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HomeMy WebLinkAbout2018-12-20 Info Packeti � 1 n i ,p'> *x CITY 01 10VVA CITY www.icgov.org City Council Information Packet December 20, 2018 IP1. Council Tentative Meeting Schedule Miscellaneous IP2. Urban Forest Management Plan Overview IP3. Urban Forest Management Plan 2018 IP4. Comprehensive Annual Financial Report (CAFR) FY ended June 30, 2018 IPS. Memorandum from City Clerk: 2019 Listening Post Tentative Schedule IP6. Email from Gustave Stewart and Austin Wu: Affordable Housing Funds in RFC Area IP7. Email from Johnson County Affordable Housing Coalition: Preparing for 2019 IP8. 2018 Building Statistics Draft Minutes IP9. Community Police Review Board: December 11 IP10. Parks & Recreation Commission: December 12 December 20, 2018 City of Iowa City Page 1 Item Number: 1. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Council Tentative Meeting Schedule ATTACHMENTS: Description Council TentaLive Meeting Schedule � r CITY OF IOWA CITY Date City Council Tentative Meeting Schedule Time Subject to change Meeting December 20, 2018 Location Saturday, January 5, 2019 8:00 AM Budget Work Session Emma J. Harvat Hall Tuesday, January 8, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Monday, January 14, 2019 4:00 PM Reception Jo. County Admin Bldg. 4:30 PM Joint Entities Meeting Wednesday, January 16, 2019 1:00 PM Budget Work Session (CIP) Emma J. Harvat Hall Tuesday, January 22, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, February 5, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, February 19, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, March 12, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, April 2, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, April 16, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 7, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 21, 2019 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Item Number: 2. + r ui �1 lat • yyrrmr�� CITY Ok 10WA CITY www.icgov.org December 20, 2018 Urban Forest Management Plan Overview ATTACHMENTS: Description Urban �-orest Management Plan Overview Iowa City 2oi8 Urban Forest Management Plan (UFMP) Overview A plan for Iowa City's urban forest developed by Plan -It Geo and the City's Parks and Forestry Division 3L. INFORMATION GATHERING A. 2016-2018 Tree Inventory Analysis and Summary (pages 13-23) ■ 25,451 street trees 1 19,563 park trees 14,972 planting sites ■ Tree Diversity: 66 genera, 178 species ■ Top Species: Silver Maple (8%) ■ Size Distribution: Greatest number of trees in the 6-12" range (32%) ■ Ash Tree Count: 3,515 (2,300 along streets and 1,215 in parks) B. Benefits of the City -Managed Trees ■ Over $4.2 million in annual savings (page 2) $4.2 MILLION IN ANNUAL SAVINGS STORMWATER RUNOFF REDUCTION ` 55.3MILLION GALLONS - $1.5MILLION IN SAVINGS CARBON SEQUESTRATION 22.4 MI'_ LBS STORED-13.2MIL LBS SEQUESTERED - $168K VALUE jjjjj78.HK'JL1BS IUALITY OFPOLLUTANTS REMOVED - $223K VALUE ENERGY SAVINGS 6 MILLION KWH - S46oK IN SAVINGS PROPERTYVALUE $986K INCREASE IN VALUE C. Ordinance Review (pages 9-10) ■ To provide urban forest program goals, recommendations, and strategies, an extensive ordinance, policy, and practices review was conducted following the U.S. Forest Service's Urban Forest Sustainability and Management Audit. D. Urban Forest Sustainability & Management Audit (pages 4-5, ii -iii) ■ 10 Categories of the Audit 1) Management Policy and Ordinances: 64% Achieved 2) Professional Capacity and Training: 38% Achieved 3) Funding and Accounting: 58% Achieved 4) Decision and Management Authority: 75% Achieved 5) Inventories: 62% Achieved 6) Urban Forest Management Plans: 75% Achieved 7) Risk Management: 56% Achieved 8) Disaster Planning: 36% Achieved 9) Practices, Standards, and BMPs: 83% Achieved 10) Community: 71% Achieved Overall Urban Forest Sustainability and Management: 68% Achieved Iowa Citv 2018 Urban Forest ManaEement Plan SvnODSIS & Summa 2. URBAN FOREST SUSTAINABILITY & MANAGER` SPECTRUM: To develop Goals & Strategies, Criteria and Indicators and the City's placement on the scale were identified (pages 3-4, 25-30): The Urban Forest Sustainability and Management Spectrum The Urban Forest 0 3 1 1 5 ("Vegetation Resource") Management of the Urban Forest 2 5 7 3 17 ("Resource Management") Community & the Urban Forest 1 2 1 0 4 ("Community Framework") Agencies & the Urban Forest 0 4 0 0 4 ("Institutional Framework") **Iowa City is ranked as "Moderate" in terms of urban forest sustainability and management** 3. FIRST 5 -YEAR URBAN FOREST MANAGEMENT GOALS FOR A 20(pages 37-43) Education Promote proper tree care through education and enforcement Organization & Management Improve efficiencies and collaborate to propel urban forest management Plan Implementation Build the team and the reinforcements to implement the Plan Urban Forestry Program Project Funding Seek alternative mechanisms for funding and projects to accomplish the strategies -+. IVIt i HODS FOK iviEASUREMENTS OF )UCCE55 & ADAPTIVE IVIANAGEMEN. (pages 32-35) A. Provides the methods for Implementation, Effectiveness, and Validation Monitoring for the Vegetation Resource, Resource Management, Community Framework, and Institutional Framework criteria as strategies are implemented. 5. SUMMARY & CONCLUSION FOR THE URBAN FOREST IVIANAGEMENT FLAN (pages 44-46) A. Provides a summary of the Plan process, ecosystem benefits of City -managed trees, tree inventory data, emerald ash borer vulnerability, criteria and performance indicators, and the 5 -year goals. 6. APPENDICES (pages i-xxv) A. Urban Forest Sustainability & Management Audit B. Street & Park Tree Inventory Methodology C. Count of Trees by City Parks & Trails D. Best Practices for Tree Preservation E. Tree Maintenance Best Practices F. Urban Forestry Resources G. Tree & Planting Site Maps H. EAB Management Guidelines & Community Outreach Iowa Citv 2018 Urban Forest ManaEement Plan SvnoDSIS & Summa Item Number: 3. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Urban Forest Management Plan 2018 ATTACHMENTS: Description Urban �-orest Management Plan 2018 x7- MCF.2--ffm VX. I Al LF, .0 is IN, V4. ,e a. 01. NO AN IWO, IN 111A -.g t —7 ilk A VA l> IN, V4. ,e a. 01. NO AN IWO, IN 111A -.g t —7 ilk Urban Forest Management Plan - IOWA CITY, IA - Acknowledgements - THE CITY OF IOWA CITY - Parks and Recreation Department Parks and Forestry Division City of Iowa City Parks and Recreation Commission The City Council of Iowa City Citizens of Iowa City - THE IOWA DEPARTMENT OF NATURAL RESOURCES URBAN FORESTRY - W"... � CITY OF IOVVA. CITY - PLAN -IT GEO, LLC - Accepted in November 2018 i�piar�L�tn ,cc cation Cover photo source: Think Iowa City All other photos unless noted are from the City of Iowa City City of Iowa City 1 410 E Washington St I Iowa City, IA 1 52240 1 www.icgov.org Our vision for the future of Iowa City is to create a healthy and sustainable urban forest that is properly managed and cared for, benefiting our citizens with improved economic and environmental well-being, increasing public safety, and enabling our employees to provide Cost- effective maintenance Our urban forest will have a large variety of trees consisting of various sizes, ages, and species. The trees will be selected and maintained according to the Best Management r. 4 i} Practices (BMPs) established by the International Society of Arboriculture (ISA) t� . J�y���i,. yV ,msje'Ao.„,.. 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"'H Executive Summary Introduction OVERVIEW OF THE BENEFITS OF IOWA CITY'S TREES PURPOSE OF THE URBAN FOREST MANAGEMENT PLAN State of the Urban Forest OVERVIEW OF THE CITY'S URBAN FORESTRY PROGRAM TREE AND PLANTING SITES INVENTORY SUMMARY Table of Contents i 1 2 3 6M 7 13 Criteria & Indicators for Urban Forest Goals & Strategies 24 IOWA CITY'S 20 -YEAR FRAMEWORK FOR URBAN FOREST... 25 Adaptive Management & Monitoring 31 RELUIVIIALNUtU Wit I HUM FUK MUNI IUKiNG PERFORMANCE.. 33 First 5 -Year Urban Forest Management Plan Strategies 36 EDUCATION 38 ORGANIZATION & MANAGEMENT 40 PLAN IMPLEMENTATION 42 URBAN FORESTRY PROGRAM PROJECT FUNDING 43 Summary & Conclusion 44001011= Appendices i APPENDIX A. URBAN FOREST SUSTAINABILITY &... II APPENDIX B: STREET & PARK TREE INVENTORY METHODOLOGY iV APPENDIX C: COUNT OF TREES BY CITY PARKS & TRAILS Vii APPENDIX D: BEST PRACTICES FOR TREE PRESERVATION ix APPENDIX E: TREE MAINTENANCE BEST PRACTICES A APPENDIX F: URBAN FORESTRY RESOURCES XVi APPENDIX G: TREE & PLANTING SITE MAPS XIX APPENDIX H: EAB MANAGEMENT GUIDELINES & COMMUNITY... XXV Tables & Figures LIST OF TABLES Table 1. Summary of the status of City of Iowa City's urban forestry program and resource______________________ 4 Table 2. Summary of the ordinance review-------------------------------------------------------------------------------------------------9 Table 3. Existing efforts with urban forestry references presenting opportunity ......................................... 10 Table 4. Departments and entities that impact urban forest management .................................................. 11 Table 5. Examples of potential partners in implementing strategies of the UFMP....................................... 12 Table 6. Parks with the highest tree count .................................................................................................. 14 Table 7. Top 10 genera ................................................................................................................................ 15 Table8. Top 10 species-------------------------------------------------------------------------------------------------------------------------------15 17 Table 9. Summary of maintenance needs for street and park trees ............................................................. 19 Table 10. Summary of maintenance need by street and park ...................................................................... 19 Table 11. Vegetation Resource - Performance Indicators__________________________________________________________________________ 25 Table 12. Resource Management - Performance Indicators______________________________________________________________________ 26 Table 13. Community Framework - Performance Indicators ....................................................................... 29 Table 14. Institutional Framework - Performance Indicators 30 Table15. Goal One strategies---------------------------------------------------------------------------------------------------------------------38 21 Table16. Goal Two strategies---------------------------------------------------------------------------------------------------------------------40 22 Table 17. Goal Three strategies----------------------------------------------------------------------------------------------------------------- 42 Table 18. Goal Four strategies------------------------------------------------------------------------------------------------------------------- 43 Table 19. Summary of the 2018 Iowa City Urban Forest Management Plan_______________________________________________ 45 LIST OF FIGURES Figure 1. Summary of the benefits of City -managed trees ........................................................................... 1 Figure 2. Plan development process-----------------------------------------------------------------------------------------------------------3 Figure 3. Land use distribution of inventoried trees .................................................................................... 14 Figure 4. Top 10 tree genera-----------------------------------------------------------------------------------------------------------------------15 Figure 5. Top 10 tree species ....................................................................................................................... 15 Figure 6. Iowa City's tree diameter distribution versus ideal distribution ..................................................... 16 Figure 7. Condition of street and park trees ................................................................................................ 17 Figure 8. Comparison of the condition of street and park trees ................................................................... 17 Figure 9. Condition distribution among the top 10 species .......................................................................... 17 Figure 10. Count of tree observations---------------------------------------------------------------------------------------------------------18 Figure 11. Maintenance needs summary----------------------------------------------------------------------------------------------------19 Figure 12. Summary of street and park tree removals by DBH..................................................................... 19 Figure 13. Summary of the tree risk assessment for street and park trees_________________________________________________ 20 Figure 14. Map of trees with a risk rating of Extreme .................................................................................. 20 Figure 15. Summary of infrastructure conflicts with street and park trees .................................................. 21 Figure 16. Condition classes of ash trees ..................................................................................................... 22 Figure 17. DBH distribution of ash trees-----------------------------------------------------------------------------------------------------22 Figure 18. Key characteristics for ash (Fraxinus) tree and emerald ash borer...ID_______________________________________ 22 Figure 19. Location and size of planting sites____________________________________________________________________________________________ 23 Figure 20: The management plan implementation process ......................................................................... 32 Figure 21. The benefits and values of City -managed trees_________________________________________________________________________ 45 Figure 22. Types of tree pruning-----------------------------------------------------------------------------------------------------------------xii Figure 23. Types of pruning cuts and the proper branch cutting technique ................................................. xiii Figure 24. Example of trees directionally pruned for clearance from power lines______________________________________ xiv Figure 25. Example of branches to be pruned for newly planted trees to promote good structure____________ xv 13 14%, IOWA CITY, IA - URBAN FOREST MANAGEMENT PLAN October 2018 EXECUTIVE SUMMARY rrr INTRODUCTION Iowa City is dedicated to building a thriving urban and community forest for a healthy and vibrant city. Realizing the community forest is a valued asset, Iowa City, herein referred to as "the City", invested in a collaborative planning process, involving extensive urban forest resource and program analysis to develop a clear, concise and timeline oriented Urban Forest Management Plan. The overall goal of the planning process was to develop a sustainable Urban Forestry Program, led by the Division of Parks and Forestry, who is committed to this measured, monitored, and strategic long- term investment. The strategic planning process engaged City staff, with the interest of the community, to evaluate all aspects and components of a comprehensive community forestry program. Together, this team developed goals and strategies to guide the City's Urban Forestry Program over the next 20 years. Clear criteria and performance indicators of urban forestry and the measures to monitor progress will allow for future planning and adaptive management over the coming years with the clear goals for the community set. Bringing to light the importance of urban forest planning, in 2014, the emerald ash borer (EAB) insect pest was found in the City. This Asian pest feeds on ash trees and quickly causes tree mortality. With approximately 2,000 ash trees across city -maintained areas, Parks and Forestry and partners are Image Source: Travel Iowa actively developing a plan to address EAB. Additionally, community outreach is being conducted due to the substantial number of ash trees on private property. Threats to the urban forest such as EAB and unforeseen pests necessitates development of this Urban Forest Management Plan. Learn more about EAB at https://www.icgov.org/emeraIdashborer. The EAB infestation, past pest and disease issues such as Dutch Elm Disease, and potential future issues warrant the need for proper urban forest planning. Starting the ambitious planning effort began with the Parks and Forestry spearheading the comprehensive street and park tree inventory of trees managed by the City. Over 45,000 trees were inventoried to collect tree species, size, condition, and maintenance needs. Over 5,000 potential tree planting sites were also mapped, which will help as the City implements the Plan to increase tree diversity and overall tree canopy, providing more environmental, economic, and social benefits to the community. The information collected from the inventory informed the strategies in the Plan for diversifying the urban forest and prioritizing risk tree and routine maintenance. With this data, the value of the city -managed trees can also be quantified, providing valuable information to the community as the City pursues enhanced community interest, support, and engagement with the urban forest. Iowa City Urban Forest Management Plan I I The Benefits & Value of the City -Managed Trees BETTER AIR QUALITY INCREASED RAIN PROPERTY VALUES INTERCEPTION INCREASED HEAT ISLAND CCINSUIVIERISM MITIGATEUIV SAVINGS k TRAFFIC CALMING & NOISE REDUCTION ENERGY 1 Nk' Value 78,146 56,325,497 added to pounds million properties removed gallons i' 6,051,929 kilowatt hours Summary of the benefits of city -managed trees COMMUNITY WELL BEING WILDLIFE COMMUNITY RECREATION AESTHETICS 22.4 mil lbs Total stored carbon Anneal 13.2 mil lbs Value sequestered The trees in Iowa City provide value in terms of increased property values, air quality improvements, reduction in stormwater values and an increase in water quality, energy savings from the shade of their canopy and protection from cool winds, and their ability to sequester and store carbon. These values, originating from research conducted by the U.S. Forest Service in 13 states across the country, equate to nearly $4.2 million total annual value to Iowa City The City wants to sustain and enhance these benefits trees provide to the community by developing and following this strategic Urban Forest Management Plan. At the same time, stresses from the urban environment including air pollution, pests and diseases such as emerald ash borer, invasive species, climate change, damage by vehicles, increased impervious surface, infrastructure conflicts, soil compaction, and maintenance neglect reduce the diversity and magnitude of these benefits and may lead to tree -related problems. With this understanding it was imperative that the City develop an Urban Forest Management Plan which will be a roadmap that first looked at the questions of What do we have? What do we want? How do we get what we want? and, How are we doing? The following will provide an overview of this process completed for the City to develop the goals, strategies, and measures to answer these questions. Iowa City Urban Forest Management Plan 111 WHAT DO WF HAVE? The first step in the planning process is to get baseline information about the natural resource and the programs and factors influencing it. An analysis of the street and park tree inventory was conducted to understand Iowa City's urban forest characteristics and maintenance needs and to identify trends. Of the 45,000 street and park trees, Top 10 tree species in Iowa City ■ Silver maple there are nearly 180 unique tree E Northern hackberry species, with the top 10 shown in the 2.60 chart (right). It includes large canopy 3.7% ■ Green ash trees like silver maple and northern Crabapple hackberry as well as smaller, flowering 3.8% trees like crabapple. One concern that Mulberry will be addressed is the abundance of 4.0% American elm green ash and other ash (3,516 trees) 46.141% which are at risk to the emerald ash ■ Black cherry 4.4% borer, a pest that quickly leads to tree ■ Boxelder mortality causing surges of immediate tree removals. The charts below show 4'9% Honeylocust 5.8% that overall, the trees in the City are in Norway maple good or fair condition with an average diameter of 12 inches but 18% require Maintenance needs summary of street and park trees immediate priority pruning and 2,110 1%0% trees are recommended for removal. __. 1400: Comparison of the condition of street and park trees in Iowa City 12000 10000 1 8000 6000 4000 2000 0 ce ■ Street Park 00 16000 �a\` 16000 Iowa City's tree diameter distribution 14000 12000 10000 8000 6000 4000 2000 0 0-6in 6-12in 12-18in Removal High Priority Pruning ■ Immediate Priority Pruning ■ Routine Pruning ■Training Pruning 0 None Needed 0 E E 18-24in 24-30in >30in Iowa City Urban Forest Management Plan I III An analysis of the urban forest program was also conducted using the U.S. Forest Service's Urban Forest Sustainability and Management Audit that evaluates every aspect of urban forest management and condition by categories such as Management Policy and Ordinances, Professional Capacity and Training, and Funding and Accounting. This audit identified the gaps in the City's urban forest as it pertains to the Vegetation Resource (the trees), the Resource Management (the staff), Community Framework (the people), and Institutional Framework (the agencies) to inform the goals, strategies, and measures provided in this Plan as described below. rIAT DO U4 — il�i�.JTr: Based on the audit, gaps were identified and the status of each Criteria and Performance Indicator as it pertains to the vegetation resource, resource management, community framework, and institutional framework, were documented on the spectrum (low, moderate, good, optimal). Each criterion has the information to —'A' OTY'5 20-YEAk .-RAMEW-Il FOR URBAN FL f<EST Mian--,.1AENT determine where the City is at on the spectrum and how to get "What we want". ria,.., DO int_ t GET WHAT WE WANT? With an understanding of the City's current urban forestry program and tree resource based on the analyses, and the desire for "Optimal" in the Criteria and Performance Indicator spectrum, goals and strategies were developed. Each goal has an overarching theme and contains the strategies to achieve the goal as well as the reference of the Criteria it addresses and the responsible agency for initiating it and monitoring progress. Goal One: Promote proper tree care through education and enforcement Goal Two: Improve efficiencies and collaborate to propel urban forest management Goal Three: Build the team and the reinforcements to implement the Plan Goal Four: Seek alternative mechanisms for funding and projects to accomplish the strategies V1 Fewer than Eve No speoes No species No species Establish a diverse Tree species species dominate represents represents represent and resilient tree diversity the entire tree more than 20% more than more than population citywide population ofthe entire tree 15%ofthe entire 1D% of the entire citywide population citywide tree population tree population urban Vast citywide citywide V2 1 o 6 DBH ranges 2 o 6 DBH ranges 4of the 6 DBH 5ofth.6 DBH Provide for uneven Diameter match the match the ranges match the ranges match the aged distribution of McPherson Ideal McPherson Ideal McPherson Ideal McPherson Ideal Distribution trees in the Distribution %(+/- Distribution % (+/- Distribution % )+/- Distribution % (+/- citywide Cliff 2%) 2%) 2%) 2%) R7 Tree planting and Tree establishment Tree establushment Tree planting and Tree planting and Tree planting establishment is is directed by needs is directed by needs establishment establishment is and od h" derived from atree derived from a tree program are driven directed establishment inventory ventory and is by the UFMP byobjective on public and -Mcient to meet objectives for criteria set in the private land anopy cover canopy cover, urban forest objectives species diversity, management plan and species distribution objectives to ensure urban Vast sustainability RS Highest priority All high priority All high priority Proactw mature Maintain public High risk tree removals only are ovals and same removals and most tree care Qightmng safety and the maintenance addressed within 5 immediate pruning immediate pruning protection,cabling, longevity of the years of notice is addressed within is addressed within etc.) is conducted trees and the ARE WE GETTING WHAT WE WANT? Using an adaptive management approach will require the consistent monitoring of all the City's criteria for urban forest sustainability. The City will be able to judge if its' new approaches to urban forest conservation are being effective, develop relationships between management actions and outcomes, and identify significant trends. This will allow the City to adjust management actions over time as changes occur both in the physical/biological environment and in the expectations of the City's residents. Iowa City's urban and community forest is a defining and valued characteristic of making the city a desirable place to live, work, and play. It is a resource that has a history and legacy of care and management; however, the resource could be more efficiently managed and enhanced. The assessment, criteria and indicators, goals and strategies, and measures for adaptive management that are presented in this Urban Forest Management Plan have been created to provide a framework to effectively, proactively, and sustainably manage trees. While it will take work and additional resources to implement the UFMP, its implementation will help ensure that Iowa City's urban and community forest will continue to be a valued part of the community. Iowa City Urban Forest Management Plan I IV "Urban trees and forests are considered integral to the sustainability of cities as a whole. Yet, sustainable urban forests are not born, they are made. They do not arise at random, but result from a community -wide commitment to their creation and management." Clark et al.: Urban Forest Sustainability _ r Introduction The trees found in our transportation corridors, parks, yards, and natural areas constitute an "urban forest" and are valuable community assets that play a major role in sustaining the quality of life enjoyed by residents of Iowa City. Although these natural features may appear long-lived, resilient, and ubiquitous; in reality, they have inherent limitations and a set of threats that necessitate the City to take steps to protect, manage and expand this resource so future generations will continue to enjoy its services and benefits. The term "urban forest" encompasses a diverse range of trees and forests found throughout urban, suburban, and exurban landscapes in the City. This variety requires the City to adopt a wide -range of management approaches. The strategies used to manage native forest ecosystems only have limited application to managing street and residential trees and, vice - versa. There is a growing consensus that urban forests are an important component of community infrastructure and a resource that must be carefully managed, protected, and included in planning efforts. The inherently close interaction between people and trees in Iowa City requires active and diligent management of the urban and community tree and forest resources to ensure public safety. A scientifically grounded management program is necessary in order to maximize the value and minimize the risk associated with trees within this complex and dynamic human ecological system in Iowa City. The initial step in meeting these challenges is the identification and organization of baseline information in the form of an inventory that describes the location, composition, structure, and health of the trees. The 2016-2018 Street and Park Tree Inventory and an analysis of the City's urban forestry program accompanied the development of this management plan designed to enhance urban forest sustainability. This Plan was developed through a collaborative effort supported by the City. It summarizes the urban forestry program and the resources in place to protect and enhance it. The Plan provides the goals, strategies, and measures required to develop and maintain a thriving urban forest for City residents and future generations to enjoy. "Urban forest sustainability is defined in terms of maintaining healthy and functional vegetation and associated systems that provide long- term benefits desired by the community. This definition places signif- icant emphasis on the role of the communities and institutions who manage the urban forest." Dwyer et al. 2003 Iowa City Urban Forest Management Plan I 1 Ox/FRVIEW OF THF RFNFFITS OF InxNA CITY'S TREES Iowa City's urban forest plays a significant role in maintaining the health and vitality of urban life. The urban forest provides a wealth of benefits to neighborhoods and residents through the reduction of energy consumption, the removal of pollutants from the air and water, reduction in stormwater flows, increased valuation of private property, increased worker productivity, reduction in stress and violent crime, as well as providing recreational opportunities and aesthetic diversity. In summary, urban forests provide "triple bottom line" benefits: social, economic, and environmental. Trees provide services which can be assigned a financial value, using the peer-reviewed i -Tree research, which are summarized below based on the 2016-2018 street and park tree inventory. Figure 1. Summary of the benefits of City -managed trees $4.2 MILLION IN ANNUAL SAVINGS STORMWATER RUNOFF REDUCTION 56.3MILLION GALLONS - $1.6MILLION IN SAVINGS CARBON SEQUESTRATION 22.4 MIL LBS STORED - 13.2 MIL LES SEQUESTERED - $168K VALUE AIR QUALITY 78 K LBS OF POLLUTANTS RLMOVFD - $223K VALUE ENERGY SAVINGS 6 MILLION KWH - S46cK IN SAVINGS PROPERTY VALU E $986K INCREASE IN VALUE +I+ The total annual benefits of Iowa City's inventoried trees (45,014 trees, 43,898 with benefits values) are estimated at $4,173,539 (street trees make up 66% of that value). Stormwater retention represents 36% of the monetary value ($1,525,508) followed by property values. Increases in property values are estimated at over $986,171 though it should be noted that the research is dated and uses regional estimates. It is still important to demonstrate that trees add value to properties in terms of aesthetics, well-being, increased tourism, sense of community, etc. Energy savings is valued at $459,295, or 11% of the total value. If the young trees continue to grow and are maintained properly and new trees are planted after removals, these benefits are likely to sustain and potentially increase. At the same time, stresses from the urban environment including air pollution, pests such as emerald ash borer (EAB), diseases, invasive species, climate change, damage by vehicles, increased impervious surface, infrastructure conflicts, soil compaction, and maintenance neglect reduce the diversity and magnitude of these benefits and may lead to tree -related problems. This understanding influenced the desire and, ultimately, the need to develop Iowa City's Urban Forest Management Plan. Iowa City Urban Forest Management Plan 1 2 This strategic plan for the management of Iowa City's urban forest addresses the numerous challenges to growing and maintaining a healthy urban forest in an efficient manner. Management of the urban forest, with its long biological life cycles and slow growth, is a long-term investment. The Plan recognizes that attempts to enhance its vigor, longevity, and diversity must reflect this reality. PURPOSE OF TNL JRBAN FOREST ,.,, tNAGL._iENT PLAN Understanding the benefits and functions of our urban forest, the City has developed this Urban Forest Management Plan. "Without a management plan, the governments and individuals responsible for taking care of an urban forest will not be effective in meeting the true needs of the trees and the community. A management plan establishes a clear set of priorities and objectives related to the goal of maintaining a productive and beneficial community forest." I American Public Works Association, 2007 Plan Purpose - Summarize the current state of the urban forest resource, resource management, community framework, and institutional framework - Provide the criteria and indicators for achieving goals of sustainable urban forest management - Provide methods of measures and monitoring of the criteria and indicators to enable adaptive management - Provide goals and strategies to advance the City along the criteria and indicators of urban forestry spectrum How the Plan Was Developed Developing the Urban Forest Management Plan was a gradational process where the results of each step informed the next, leading to development of the goals, strategies, and adaptive management measures. Program & Data Analysis First, research was conducted to gather information about the City's urban forest. This involved an extensive review of existing plans, policies, ordinances, practices, and initiatives. Data pertaining to the City's urban forest such as the street and park tree inventory were gathered and analyzed to identify the urban forest structure, maintenance needs, and potential risks. Results from the analysis were then applied to the Urban Forest Program Audit (described on the next page) and ultimately, to the Plan's Goals and Strategies. Figure 2. Plan development process i Program & Data Analysis After initial information and data were gathered and analyzed, the City staff provided additional input to inform development of the Plan. Criteria & Measures, Performance Goals, Criteria & Performance Indicators I Measures, Goals, & Strategies Indicators & Strategies Using the results of the steps listed above, the Plan was developed by establishing Criteria and Performance Indicators for urban forest management and sustainability. This process identifies where the City is currently on a management and sustainability spectrum and a description of the criteria for advancing on the spectrum. Table 1 on the next page summarizes the outcomes which are described in the Criteria & Indicators for Urban Forest Goals & Strategies section. This shows Iowa City's status. While the City is achieving near optimal levels for some elements, there exists a need for improvement in others. Based on the City's current status, goals and strategies were developed to advance the City's urban forest resource and program along this spectrum. Monitoring and methods for measuring progress were established to enable the City to evaluate the status and adjust and adapt strategies accordingly. Iowa City Urban Forest Management Plan 1 3 Table 1. Summary of the status of the City of Iowa City's urban forestry program and resource The Urban Forest Iowa City Sustainability and Management Spectrum The Urban Forest 0 3 1 1 5 ("Vegetation Resource") Management of the Urban Forest 2 5 7 3 17 ("Resource Management") Community & the Urban Forest 1 2 1 0 4 ("Community Framework") Agencies & the Urban Forest 0 4 0 0 4 ("Institutional Framework") As seen in the table above, overall, the City resides in the "Moderate" level of urban forest management and sustainability according to the Criteria & Performance Indicators. These criteria and indicators were established by the U.S. Forest Service and industry professionals and were tailored to Iowa City. Of the total 30 urban forestry criteria, the City is moderately performing 14 of these instead of performing or achieving these at the "Good" or "Optimal" level. This illustrates the need for improved urban forestry management. Criteria where the City is performing lower than "Good" were evaluated to develop the goals, strategies, and adaptive management measures. The following describes the planning process in more detail. URBAN FOREST PROGRAM AUDIT To effectively provide urban forest goals and strategies, the City's urban forest and the management program were reviewed and analyzed through an extensive research and information gathering process. The process involved utilizing a model for strategic urban forest The Urban Forest Sustainability & Management Audit for analyzing the City's program Category & Element Management Policy and Ordinances Professional Capacity and Training Funding and Accounting Decision and Management Authority Inventories Urban Forest Management Plans Risk Management Disaster Planning Practices, Standards, and BMPs. Community Categories Policy Capacity Funding Authority Inventories Plans Risk Disaster Practices Community 27 1 2 2 12 8 r 3 3 22 18 Policy Capacity Funding Authority Inventories Plans Risk Disaster Practices Community planning that was first introduced by James R. Clark et al. (1997). It recommends the use of a series of management criteria and performance indicators (C&I) to measure urban forest management success. Built into this process for the City's Plan is the updated comprehensive criteria and performance indicators developed by W. Andy Kenney et al. (2011). See the "Criteria Key" in the Recommended Methods for Monitoring Performance Criteria section for an adapted list of these C&I's for Iowa City. To summarize this approach, the Vegetation Resource criteria and performance indicators are used to monitor the urban forest resource to provide an accurate assessment within the City's changing environment. The Community and Institutional criteria and performance indicators assess changing economic and social conditions Iowa City Urban Forest Management Plan 14 critical to urban forest sustainability. The Resource Management criteria and performance indicators provide the means for measuring how well management is proceeding in sustaining or enhancing these urban forest conditions and for tracking subsequent changes. The process of analyzing the urban forest following these respected guides was conducted using the U.S. Forest Service's Urban Forest Sustainability and Management Audit which applies the aforementioned resources. This audit completed for Iowa City involved extensive information and document gathering and research to identify policies, practices, programs, and standards pertaining to 11 categories of urban forest sustainability and management as defined by Clark et al. (1997), Kenney et al. (2011), and the U.S. Forest Service. - Management Policy and Ordinances: 64% Achieved - Professional Capacity and Training: 38% Achieved - Funding and Accounting: 58% Achieved - Decision and Management Authority: 75% Achieved - Inventories: 62% Achieved - Urban Forest Management Plans: 75% Achieved - Risk Management: 56% Achieved - Disaster Planning: 36% Achieved - Practices, Standards, and BMPs (Best Management Practices): 83% Achieved - Community: 71% Achieved Overall: 68% Achieved (view a detailed summary of the Audit results in Appendix A) Each category has a series of elements pertaining to the category. For example, the Management Policy and Ordinances category has the elements, "Climate Change", "No Net Loss", "Risk Management", "Tree Canopy Goals", "Tree Protection", "Utility", "Human Health — Physical & Psychological", "Wildlife Diversity / Habitat / Protection", "Performance Monitoring", "Public and Private [tree] Ordinances", "Development Standards", "High -Conservation Value Forests", and "Urban Interface (WUI)". All available documents, plans, etc. were reviewed, noted, and tallied in the audit worksheet. After the research and discovery phase, each category's element was "ranked" as 0) Not Practiced, 1) In Development, 2) Adopted Common Practice, 3) Exceeds Common Practice based on the City's current status. In the audit, this ranking provides an evaluation of the level at which the City is achieving each category and overall urban forest management and sustainability. This urban forest audit identified the gaps in the City's urban forest as it pertains to the Vegetation Resource, the Resource Management, Community Framework, and Institutional Framework to inform the goals, strategies, and measures provided in this Plan. For more information on the U.S. Forest Service's Urban Forest Sustainability and Management Audit, visit https://www.interfacesouth.org or view an example in Appendix A. STREET AND PARK TREE INVENTORY ANALYSIS In addition to the analysis of the urban forestry program and the categories of urban forest sustainability and management, a street and park tree inventory was conducted beginning in December of 2016 and completed in March of 2018. This inventory was completed by International Society of Arboriculture Certified Arborists using the tree inventory software, Tree Plotter, developed and used by Plan -It Geo, contracted for the inventory. For a description of the tree inventory methodology and protocols, see Appendix B. This Plan summarizes the City's tree structure, maintenance needs, and potential risks which were used to inform maintenance recommendations and overall urban forest management and enhancement while pursuing sustainability of the resource. Tree inventory crew Image Source: Plan -It Geo Iowa City Urban Forest Management Plan 1 5 Nam l� Source: Plan -It Geo nvFRvIEW OF THE CITY'S URBAN FORESTRY PROGRAM Iowa City, located in Johnson County, IA was established in 1839 and encompasses 25 square miles, making it one of Iowa's larger communities with a July 2016 population estimate of 74,398. As part of the development of the City's IC2030 Comprehensive Plan Update, the public was asked what they like most about the City in one word. Based on the results, elements such as parks, trails, community, walkable, neighborhoods, and green were some of the highest counts. This emphasizes the important role that the City's urban forestry program has in creating and maintaining a place that the community enjoys. The Parks and Forestry Division of the Parks and Recreation Department is responsible for the care and maintenance of all City -owned trees located in parks, easements, and City rights-of-way. Other duties include snowplowing in the winter and other miscellaneous duties to assist in the maintenance of public green space. There are 1,800 acres of managed parks and natural areas throughout the City and the recent inventory tallied nearly 50,000 trees in parks and along streets that Parks and Forestry manages. The staff within the Division includes the Superintendent, a Senior Maintenance Worker (SRMW), one Maintenance Worker III (MWIII), one Maintenance Worker II (MWII), and two Maintenance Worker I (MWI) positions. Also, during the months of April through October a Variable Employee is staffed. TRAINING AND EXPERIENCE REQUIREMENJ`S SRMW: Degree in Forestry or related field, International Society of Arboriculture (ISA) Certified Arborist certification, Pesticide Applicator License, and a Commercial Driver's License (CDL). MWIII: High School degree and two years of experience, Pesticide Applicator License, and CDL. In addition to these requirements, the current MWIII staff is also an ISA Certified Arborist, ISA Certified Municipal Arborist, and has the ISA Tree Risk Assessment Qualification (TRAQ). MWII: Two years of experience and a CDL. MWI: One year of experience and a CDL. Funding & Budget For the Parks and Forestry Division to operate, the majority of the budget comes from the General Fund and approximately 10% comes from the Road Use Tax. Variable, small amounts also come from the Division's Memorial Tree Fund. BUDGET SUMMARY (2018) Tree Planting & Initial Care .................... $67,145.00 Tree Maintenance & Removals........... $123,000.00 Management & Wages ....................... $479,551.15 Equipment, Operating Supplies, Training, and Tech Support ......................................... $110,778.00 In addition to the General Fund and Road Use Tax, the Division actively pursues available grants for tree planting and maintenance. Each year, the Division orders seedlings from the State Nursery for free to do timber stand improvement projects in several parks with wooded areas. For areas along streets within the public right-of-way, the Division often utilizes the MidAmerican Energy "Plant Trees, Save Energy" program. The amount varies each year for the program's Trees Please Grant. For 2018 the City will receive $10,000. Iowa City Urban Forest Management Plan 1 7 Current Tree Maintenance Practices The Parks and Forestry Division operates and maintains the urban forest with an established maintenance and planting schedule. The 2016-2018 street and park tree inventory consists of over 45,000 trees and nearly 5,000 planting sites. The summary of this data is provided in Tree and Planting Sites Inventory Summary section. The purpose of the inventory was to gather accurate and current data about the structure of the urban forest as well as the maintenance needs and priorities. This Plan provides recommendations for maintenance program improvements. The City has staff and equipment for conducting tree maintenance and planting in-house. Maintenance equipment includes a pickup truck, two wood and debris chippers, a grapple wood truck, and a watering trailer. Depending on the size of the tree, the type of equipment, and existing workloads, maintenance is contracted. The City Code established the location and responsibility of trees within the public right-of-way. It also provides the site development and design standards, tree nursery standards, and proper maintenance procedures. These ordinances and standards from the City Code (City Code: 16-1A) pertaining to the urban forest are summarized in the Ordinance Review & Summary section of this Plan. Recommendations for adding and/or improving these are provided in the Criteria & Indicators for Urban Forest Goals & Strategies section. SUMMARY OF THE CITY'S MAINTENANCE PRACTICES • Routine pruning such as the removal of dead, disease, dying, damaged, poor structured tree limbs, and for clearance is conducted daily and requests from the public are integrated into the pruning schedule. • Tree risk management is conducted during routine pruning and the updated inventory will assist the Parks and Forestry with prioritization and scheduling. • MidAmerican Energy is responsible for tree pruning for clearance around power lines. • Young tree pruning is completed during the winter months. • Oaks (Quercus) are only pruned in the winter months to prevent oak wilt (Bretziella fagacearum). If oaks need to be pruned outside of this timeframe, pruning cuts are treated. • Trees requiring immediate removal or pruning are addressed as soon as possible using in-house and contracted tree care companies depending on the extent and workloads. • Newly planted trees are typically mulched and the trees are watered for the first 2 years depending on the level of precipitation. After 2 years, the adjacent property owner is asked to assist. Information on proper tree care and watering requirements is provided. • The number of trees planted on an annual basis is between 150 and 200 trees depending on the season and available staff time and resources. • The tree maintenance staff understand locations where trees are needed. The 2016-2018 tree and planting site inventory will assist staff in prioritizing locations for planting. • If the property owner has public right-of-way adjacent to his or her property and would like to plant a tree, a tree planting permit application must be completed and sent to the City for review. Optionally, the property owner may contact the City to have a tree planted for them though the planting will depend on the specific situation, whether it is a replacement tree, and current Forestry budget constraints. The Planting in the Right -of -Way brochure and Tree Planting Permit application are available online. • The City has tree inventory management software known as Tree Plotter and Work Order Management that contains all inventory points and data. This Plan provides a summary of the data and will assist the maintenance staff with future maintenance and planting. • Minimal vegetation control chemicals are used throughout the City's managed parks and natural areas. Turf areas and open green spaces are not routinely sprayed to control undesirable vegetation. Mechanical techniques (hand weeding, mowing/trimming, over -seeding and mulching) and landscape design techniques (such as prairie -style and new perennial design) are used to reduce the need for vegetation control chemical use. Iowa City Urban Forest Management Plan 1 8 Ordinance Review & Summary To provide urban forest program goals, recommendations, and strategies, an extensive ordinance, policy, and practices review was conducted following the U.S. Forest Service's Urban Forest Sustainability and Management Audit. The following provides a high-level summary of these pertaining to or affecting urban forestry and is not intended to be comprehensive but to highlight the importance placed on urban trees. The City Code is available at: http://www.sterlingcodifiers.com/codebook/index.php?book id=953. Table 2. Summary of the ordinance review No Net Loss of Tree Canopy Tree Risk Management Tree Protection Invasive Management Arborist Standards City Code, Title 14, Chapter 5, Article E "Landscaping and Tree Standards", 14-5E-6: PRESERVATION OF EXISTING TREES, E, Table 5E-2 "Schedule of Substitution Values" City Code, Title 6, Chapter 1, 6-1-2: PUBLIC NUISANCE DEFINED; PUBLIC NUISANCES ENUMERATED, B. "Diseased Or Damaged Trees Or Plant Materials" City Code, Title 18, Chapter 3, 18-3-2: DESIGN STANDARDS, E: "Landscape Preservation" City Code, Title 14, Chapter 5, Article E "Landscaping and Tree Standards", 14-5E-5 PROTECTION AND MAINTENANCE, C City Code, Title 14, Chapter 5, Article E "Landscaping and Tree Standards", 14-5E-6 PRESERVATION OF EXISTING TREES, A-E City Code, Title 10, Chapter 8, 10-8-5: DAMAGE TO TREES OR PLANT MATERIALS PROHIBITED, A & B Ordinance 05-4186, 12-15-2005 Street Tree Requirements, and listed in City Code, Title 14, Chapter 5, Article E "Landscaping and Tree Standards", 14-5E-7: STREET TREE REQUIREMENTS City Code, Title 14, Chapter 5, Article I "Sensitive Lands and Features", 14-51-6: JURISDICTIONAL WETLANDS, F. "Design Standards" 5 & 6 City Code, Title 10, Chapter 8, 10-8-10: ARBORICULTURAL SPECIFICATIONS AND STANDARDS OF PRACTICE Tree planting requirements for the removal of trees: 36" or > DBH* = 3 required trees 12-35" DBH = 2 required trees 2-12" DBH = 1 required tree *DBH = diameter at breast height (45) Any dead, diseased, or damaged trees be injurious to other trees, property, or people should be managed appropriately. The landscape shall be preserved in its natural state by minimizing tree and soil removal. Structures and other site improvements shall be located where the maximum number of trees are preserved on the site. Provides development plan criteria which requires trees to be preserved. Explains the property owner's [all types except single-family] tree maintenance and replacement responsibility. Describes tree root protection requirements such as a minimum protection zone extending to the tree's canopy drip line. Describes the role of the city forester and that the preserved trees must survive for at least five years or else replacement is required. Describes tree protection during construction and the role of the city forester. Provides minimum tree spacing, number, and minimum planting site width for street trees adjacent or within the public right-of- way. No planting of foreign or invasive species, including intrusive native varieties, in regulated wetland or buffer areas is prohibited. — recommend a species list The city forester is authorized to establish specific standards for tree planting and maintenance. Iowa City Urban Forest Management Plan 1 9 Tree Pruning City Code, Title 10, Chapter 8, 10-8-7: TRIMMING TREES AND PLANT MATERIALS Tree Nursery City Code, Title 14, Chapter 5, Article E Stock "Landscaping and Tree Standards", 14 -5E - Requirements 7:STREETTREE REQUIREMENTS, B. "Street Trees Within Public Right Of Way" Minimum Soil City Code, Title 14, Chapter 5, Article E Volume "Landscaping and Tree Standards", 14-5E-4: TREE PLANTING REQUIREMENTS, C. "Siting Requirements" Tree Species City Code, Title 14, Chapter 5, Article E List "Landscaping and Tree Standards", 14-5E-3: GENERAL REQUIREMENTS AND MEASUREMENTS, A. "Permitted Species" Describes the pedestrian and vehicle tree clearance standards established by the city forester. Any tree planted within the street right of way must have a single trunk, with a minimum of four feet (4') from grade to the first branch, at the time of planting. The minimum planting area required for large trees is 256 square feet and 120 square feet for small trees. The city forester is to establish the list of recommended trees for planting. Related Plans & Initiatives In addition to the tree and landscape preservation and enhancement listed in the City Code, trees and the entire urban forest also have high importance in other City and region plans, studies, and initiatives. This incorporation of trees and urban forests in these efforts displays the appreciated value considered by many organizations and entities. The following describes these efforts at a high-level which were reviewed during the discovery phase of the Urban Forest Sustainability & Management Audit. Table 3. Existing efforts with urban forestry references presenting opportunity to integrate with the UFMP Document ImpactingUrban IC2030: Comprehensive Plan - Goals for growth and proper land use Update (2013) Gather Here Park Master Plan (2017) - Preserving and enhancing the environment and resources - Goals and strategies for parks and open space use and connectivity - Individual park plans for improving the service, availability and use - Inventory and analysis of the City's parks and natural areas Natural Areas Master Plan (2018) - Describes how to restore and manage these areas in order to preserve their ecological functions and increase biodiversity (the STAR Community) South District Plan (2015) - Goals for tree -lined streets - Goals for parks, trails, and open space Climate Action and Adaption Plan - Strategies to achieve emissions targets. An opportunity for this UFMP (in progress) to be integrated as trees play a major role in climate change mitigation - Complete Streets - Sidewalk Infill Program - Bicycle Master Plan Others -Trails Master Plan - Downtown Redevelopment Plan - University Heights Community -Johnson County conservation efforts Iowa City Urban Forest Management Plan 1 10 Other City Department Interaction The many elements, challenges, and locations of trees managed by the City require cohesive management and interactions among departments, divisions, and organizations to maintain and enhance it. To illustrate the complexity of urban forest management, the following provides an example of some of the entities involved or impacting trees to any extent. It shows that managing the urban forest cannot afford inward looking and requires inclusiveness among the entire City. Table 4. Departments and entities that impact urban forest management o Parks and Forestry Division o Recreation Division o Facilities Division o Sustainability Services o Neighborhood Services ■ Urban Planning ■ Neighborhood Outreach • Neighborhood Council of Iowa City • Program for Improving Neighborhoods (PIN) Grant • 36 Neighborhood Associations ■ Community Development • UniverCity Neighborhood Partnership Program ■ Metro Planning Organization of Johnson County (MPOJC) — Complete Street policy and County Master Plan o Engineering Division — oversees the Complete Streets Policy o Streets and Traffic Engineering o Wastewater/Water o Transit o Refuse/Recycling Iowa City Urban Forest Management Plan 1 11 Existing and Potential Partners in Urban Forestry Beyond the City interactions there are opportunities and existing partnerships to grow the urban forest. Some examples and their strengths and opportunities to bring to a partnership are provided below. Iowa Department of Natural Resources X X X Iowa Urban Tree Council X X X Trees Forever, Inc. X University of Iowa and ISU Forestry X Extension Project Green Neighborhood Associations Iowa City Downtown District Iowa City Community School District MidAmerican Energy X X X X Volunteer Engagement & Public Education Community support, education, and involvement are essential to an urban forestry program. The City is actively pursuing enhancement of this with the 2016-2018 tree inventory and software, development of this Plan, Arbor Day events for public and private schools with local media coverage, and by acquiring the Arbor Day Foundation's Tree City USA award annually since 1979. In 2018 the City was awarded the Tree City USA Growth Award. The potential partnerships described above are opportunities for increasing public engagement and education. Also, the tree inventory software application could be used by the community to learn about the trees around them, the many benefits the trees provide, and areas planned for tree maintenance. PLANTING IN THE RIGHT-OF-WAY �r-KM Wit. Arbor Day celebration in Iowa City, learn about the City's trees on the app, and the Iowa City Planting in the Right -of -Way brochure Iowa City Urban Forest Management Plan 1 12 TREE AND PLANTING SITES INVENTORY SUMMARY Using the inventory data in Microsoft Excel, Access, ArcGIS, and the City's y Tree Plotter app, analyses were conducted to determine the state, characteristics, and trends of the city -managed trees. The inventory does not account for trees along stream corridors or undeveloped City 4' property. The information is provided to guide future maintenance and management and to better plan for the health and longevity of the City's urban forest. This analysis and summary was conducted using the inventory data II�- - - —�•r�i completed in March of 2018 which, as of March, consisted of 45,014 trees and 4,972 planting sites. Of those 45,014 trees, 25,451 are street trees and 19,563 points are park trees. Planting sites were only mapped alongtor= or within the City's rights-of-way, not in parks. It should be noted that the <w, City is actively managing trees and updating the inventory database so these counts and overall summaries may vary slightly. Some of the analyses and summaries were completed separately for street Tree inventory crew image source: and park trees because of the differences in management techniques. Plan -It Geo The following section provides the results of the analysis of the street and park tree inventory analysis by structure and maintenance needs. This analysis informed the tree maintenance and overall resource strategies. Iowa City's tree inventory displayed in the City's Tree Plotter software application 006, Iowa City's Tree Plotter app Tree Plotter - Iowa City T s �_ o- www.pg-cloud.com/lowaCity Iowa City Urban Forest Management Plan 1 13 The Structure of City -Managed Trees Urban forest structure describes the tree population in terms of its species composition, number of trees, age classes, and tree distribution. These summaries assist urban forest managers in proper tree management and planting to ensure long lasting canopy and benefits distributed equally across the City. TREES By LAND USE Before summarizing trees by structure and maintenance needs, it is important to understand the distribution of trees in relation to land use. The land use affects the type of maintenance needed or previously conducted; the adjacent landowners and their views, perspectives, and willingness to assist; and the resources available for a tree in a particular land use. The following chart describes the distribution of trees across land uses. Figure 3. Land use distribution of inventoried trees 31% 0.1% 0.2% ■ Park/ Vacant/ Other Single Family Small Commercial Multi Family Industrial/ Large Commercial N/A PARK TREE DISTRIBUTION The City maintains trees approximately 50 parks. Based on the inventory, a total of 19,563 trees are in maintained areas of parks and trails. This includes trees plotted as "stump", "removed", and "dead". The following provides a summary of the parks with the highest number of trees but a table of total trees by park is provided in Table 6. Parks with the highest tree count Park Name Count % of Park Trees Iowa river rc trail 1554 7.9% Willow creek park 2355 12.0% Hickory Hill park 2468 12.6% Peninsula Park 2918 14.9% Terry Trueblood Recreation Area 3605 18.4% Iowa City Urban Forest Management Plan 1 14 TREE DIVERSITY AND COMPOSITION Tree composition data are essential since the types of trees present in a community greatly affect the amount of benefits produced, tree maintenance activities, and budgets. Based on the inventory data there exists a total of 66 unique genera (includes "N/A", "Conifer", and "Broadleaf") with the top five comprised of Acer (20%), Fraxinus (8%), Quercus (8%), Ulmus (7%), Celtis (6%). The top ten genera comprise 72% (32,385) of the total street and park tree population. Table 7. Top 10 genera Genus Count % Whole Acer 8958 20% Fraxinus 3527 8% Quercus 3422 8% Ulmus 3280 7% Celtis 2903 6% Morus 2804 6% Malus 2666 6% Prunus 2074 5% Gleditsia 1688 4% Thuja 1063 2% Total 32385 72% Figure 4. Top 10 tree genera 4% 2% 5% 6% 6% 8% 6% 7% 8% ■ Acer Fraxinus Quercus Ulmus Celtis Morus Malus Prunus Gleditsia Thuia Based on the inventory data there exists a total of 178 unique tree species (includes generalized species classifications such as "Ash" and "Birch"). The top ten species comprise 50% of the population, the highest belonging to silver maple (8.1%), followed by northern hackberry (6.4%), and green ash (6.1%). The following provides a summary of the top ten species identified in the 2016-2018 tree inventory. Table 8. Top 10 species o� Common Name Count Whole Silver maple 3650 8.1% Northern hackberry 2903 6.4% Green ash 2727 6.1% Crabapple 2631 5.8% Mulberry 2185 4.9% American elm 1987 4.4% Black cherry 1807 4.0% Boxelder 1732 3.8% Honeylocust 1688 3.7% Norway maple 1189 2.6% Total 22499 50% Figure 5. Top 10 tree species 2.6% 3.7% 3.8 i 4.0 4.4% 4.9% 5.8% 6.4% ■ Silver maple Northern hackberry green ash Crabapple Mulberry American elm Black cherry Boxelder Honeylocust Norway maple The abundance of maple, particularly silver maple, pose present and future concerns. Large, maturing silver maples tend to shed branches presenting a potential risk. Also, silver maples grow large and are often multi - stemmed, resulting in high maintenance costs when overly mature or diseased silver maples require removal. It is also always important to maintain species diversity at the street block and neighborhood level, which maintains citywide tree diversity and pest/disease resiliency. Iowa City Urban Forest Management Plan 1 15 SIZE ANDAGE DISTRIBUTION The distribution of tree ages influences the structure of the urban forest as well as the present and future costs. An uneven -age urban forest offers continued flow of benefits and a more uniform workflow allowing managers to more accurately allocate annual maintenance funds. ■ City Distribution Ideal Distribution Figure # shows the distribution of size classes (DBH or diameter at breast height, 4.5') for the inventoried trees that were assigned a value. According to the figure, the 6-12in DBH range comprises the majority of the tree inventory database with 14,372 trees or 32% and the 24-30in DBH range makes up the smallest portion with 3,019 trees or 7%, slightly less than the >30in range with 3,027 trees. Street trees average 13.1", park trees with 11.1" and an overall average of 12.2" DBH. According to Figure #, the aggregated data does not reflect the ideal urban forest distribution (McPherson, Soares et al. 2011) due to the count of the 0-6in and 6-12in DBH ranges. Ideally, the 0-6in range would represent 40% of the population and the 6-12in range would represent 25% of the population. The distribution of individual tree ages within a tree population influences present and future costs as well as the flow of benefits. An ideal age/size distribution in the tree population allows managers to allocate annual maintenance costs uniformly over many years and assures continuity in overall tree canopy coverage and associated benefits which are often dependent on the growing space of individual trees (e.g. open grown versus restricted growing areas). To optimize the value and benefit of trees, the community forest should have a high percentage of large canopy trees which provide more ecosystem benefits. At the same time, there must be a sufficient number of younger, smaller trees in the tree population to account for the loss of trees over time and thereby maintain a sustainable community forest. In traditional forest management, this is similar to an uneven -aged stand or tree population. The Management Needs of City -Managed Trees Tree characteristics and outside forces affect the management needs for urban trees. An analysis of the condition and maintenance requirements assists managers in planning the urban forest. Tree condition indicates how well trees are managed and how well they perform given site-specific conditions. Tree maintenance needs are inventoried for public safety reasons and for the health and longevity of the trees. Understanding the maintenance needs assists tree managers in establishing daily work plans and has also complemented the development of the Urban Forest Management Plan. .oibAN C-OKLE COND i iON The inventory data was analyzed to identify trends in tree management needs and condition. Local information on the condition of street and park trees plays an important role in community planning, municipal budgeting, Iowa City Urban Forest Management Plan 1 16 Figure 6. Iowa City's tree diameter distribution versus ideal distribution 20000 40% 18000 16000 14000 27% 12000 25% 10000 8000 15% 6000 10% 10% 4000 7% 6% 7% 2000 . . 4% 0 6-12in 12-18in 18-24in 24-30in >30in ■ City Distribution Ideal Distribution Figure # shows the distribution of size classes (DBH or diameter at breast height, 4.5') for the inventoried trees that were assigned a value. According to the figure, the 6-12in DBH range comprises the majority of the tree inventory database with 14,372 trees or 32% and the 24-30in DBH range makes up the smallest portion with 3,019 trees or 7%, slightly less than the >30in range with 3,027 trees. Street trees average 13.1", park trees with 11.1" and an overall average of 12.2" DBH. According to Figure #, the aggregated data does not reflect the ideal urban forest distribution (McPherson, Soares et al. 2011) due to the count of the 0-6in and 6-12in DBH ranges. Ideally, the 0-6in range would represent 40% of the population and the 6-12in range would represent 25% of the population. The distribution of individual tree ages within a tree population influences present and future costs as well as the flow of benefits. An ideal age/size distribution in the tree population allows managers to allocate annual maintenance costs uniformly over many years and assures continuity in overall tree canopy coverage and associated benefits which are often dependent on the growing space of individual trees (e.g. open grown versus restricted growing areas). To optimize the value and benefit of trees, the community forest should have a high percentage of large canopy trees which provide more ecosystem benefits. At the same time, there must be a sufficient number of younger, smaller trees in the tree population to account for the loss of trees over time and thereby maintain a sustainable community forest. In traditional forest management, this is similar to an uneven -aged stand or tree population. The Management Needs of City -Managed Trees Tree characteristics and outside forces affect the management needs for urban trees. An analysis of the condition and maintenance requirements assists managers in planning the urban forest. Tree condition indicates how well trees are managed and how well they perform given site-specific conditions. Tree maintenance needs are inventoried for public safety reasons and for the health and longevity of the trees. Understanding the maintenance needs assists tree managers in establishing daily work plans and has also complemented the development of the Urban Forest Management Plan. .oibAN C-OKLE COND i iON The inventory data was analyzed to identify trends in tree management needs and condition. Local information on the condition of street and park trees plays an important role in community planning, municipal budgeting, Iowa City Urban Forest Management Plan 1 16 and use of resources. Each inventoried tree was rated for the condition of the wood and the foliage on a scale of "excellent", "good", "fair", "poor", and "critical/dead" using the inventory arborists' expertise in tree species physiology and responses to factors affecting each tree. The tree health (condition) chart shows that of the 45,014 trees inventoried, the majority (47%) are in good condition. 1,384 (3%) trees are critical or dead and 2,428 (5%) trees are in poor condition. Trees that are dead or dying should be removed, with priority to remove the highest risks. Trees that are in poor condition should be monitored, maintained, treated, and/or removed depending on each tree's situation. Figure 7. Condition of street and park trees Figure 8. Comparison of the condition of street and park trees 2% 0% — 140ii ■ Good ■ Fair ■ Poor SII Critical/Dead Excellent N/A 12000 10000 8000 6000 4000 2000 0 ■ Street Park Q00 IP Z,��? a Figure 8 shows the condition of street versus park trees. As illustrated, street trees have a better overall condition though there exists more critical or dead trees in parks. These summaries are addressed in the street and park tree maintenance recommendations. The top ten tree species comprise 50% of the total urban forest so the condition of these species needs to be evaluated to determine their performance in an urban environment. The figure below summarizes the condition distribution of each of the top ten species. Figure 9. Condition distribution among the top 10 species a -\Z a�N °+� �'pa ¢�� �J��� A % Excellent ■ % Good ■ % Fa: ■ % Poor % Critical/Dead The evaluation of condition of the top ten species shows that the majority of trees are rated as either good or fair condition. Iowa City Urban Forest Management Plan 1 17 TREE OBSERVATIONS Observations were noted during the inventory to indicate common issues of the street and park trees such as mechanical damage, cavity decay, and improper mulching practices. A total of 39,311 observations were noted for 23,866 trees. The chart to the right summarizes the observations for the 45,014 trees inventoried (as of March 2018). r Mechanical damage to the trunk of a young tree Improperly pruned tree Source of images: Plan -It Geo Figure 10. Count of tree observations Crown Dieback 12294 Cavity Decay 9544 Poor Structure - 4866 Pests 2508 Mechanical Damage 2332 Nutrient Deficiency 2295 Poor Root System 871 Serious Decline 773 Canker 755 Poor Location 741 Frost Cracks 705 Girdling Roots 638 Improperly Installed 373 Improperly Pruned 270 Hardscape Damage 132 Improperly Mulched 126 Remove Hardware 57 Memorial Tree 27 Grate/Guard 4 0 5000 1000C 15000 The trees noted with crown dieback (12,294 trees) should be monitored, especially the trees still in fair or good condition to determine if additional decline can be prevented or reduced. Other observations such as mechanical damage, poor structure, poor location, and improper installation/pruning/mulching may be a result of anthropogenic causes. While some observations can be treated, many cannot be corrected and should instead be prevented, such as mechanical damage and large girdling roots. These observations are useful in understanding trends in maintenance practices, stress, and signs and symptoms of potential issues which help to form the recommendations in this Plan. Iowa City Urban Forest Management Plan 1 18 MAINTENANCE NEEDS OF STREET AND PARK TREES The inventory included an assessment of the maintenance needs, if any, for each tree. This information along with location, tree size, and the Tree Plotter application were used to guide the management recommendations. The table and chart below provide a summary of the maintenance required for both street and park trees. Table 9. Summary of maintenance needs for street and park trees Maintenance Need Count % Removal 2110 5% High Priority Pruning 532 1% Immediate Priority Pruning 31 0.1% Routine Pruning 32398 72% Training Pruning 1501 3% None Needed 8223 18% NA 219 0.5% Total Whole 45014 100% 3% Figure 11. Maintenance needs summary 1%0% Removal High Priority Pruning ■ Immediate Priority Pruning ■ Routine Pruning ■ Training Pruning ■ None Needed Of the 45,014 total trees, 44,795 trees have a maintenance value. The majority of trees are noted for routine pruning with 72%. Trees recommended for removal comprise 5% of the inventory with 2,110 trees and for high priority pruning and immediate pruning, a total 532 (1%) and 31 (0.1%) trees, respectively, were noted. The table to the right distinguishes the maintenance needs of street and park trees separately since maintenance methods are different for the two areas. In summary, parks have more trees recommended for removal with 1,173 trees but less high priority and immediate priority pruning compared to street trees. More street trees require training pruning with a total of 1,262 trees. Since the size of the tree often has a large impact on cost, a summary of the trees for removal by DBH is provided in the chart to the right. The 6-12in DBH range has the highest percent with 36% (767 trees) followed by the 3-6in range with 20% (425 trees) and then 18-24in range with 19% (403 trees). Table 10. Summary of maintenance need by street and park Maintenance Need Street Park Removal 937 1173 High Priority Pruning 381 144 Immediate Priority Pruning 23 8 Routine Pruning 16717 15576 Training Pruning 1262 239 None Needed 6047 2142 Total 25367 19282 Figure 12. Summary of street and park tree removals by DBH ° 0% 5% 12% 19% 5% 0-3in ■ 3-6in ■ 6-12in ■ 12-18in ■ 18-24in 24-30 i n >30in N/A Iowa City Urban Forest Management Plan 1 19 SUMMARY OF TREE Risk ASSESSMENT A Level 2 Qualitative Risk Assessment was completed during the 2016-2018 inventory for street and park trees based on ANSI A300 (Part 9) standards and the protocols in the Best Management Practices: Tree Risk Assessment, published by the International Society of Arboriculture (2011). Details about the risk assessment process are found in Appendix B of this Plan. Of the 45,014 trees in the inventory, 24,335 trees were assigned a risk rating. Primarily, a Low Risk Rating was assigned with 22,859 trees (94%). Only 9 trees were assigned an Extreme Risk Rating, 5 of which are street trees. It should be noted that these summaries of removals are as of March 2018. The City is actively managing tree risk and these values may have changed. Figure 13. Summary of the tree risk assessment for street and park trees 1% 0.04% Figure 14. Map of trees with a risk rating of Extreme r, Clty Park Y I MANN Q $£ city - Old Capital MUBeum v � Iowa City. 3 ZL e � A_ O N s<answd HOOVER 41" O o Hilll Park lry rk 13 Re Catholic C3 Edu atlon Center �pye . p 30 e raveF . City Nigh School n Q m IN1113xi-- — o � ROOSEVEL Iowa Muni Airp ■ Low Moderate ■ High Extreme Ila Layer: .Trees Display by: oeH Symbology: None Showing 8 of 8 sites,. Toggle All a � fi-12in J 18-24in (3) J 24-30in ;e 30in (3) Pie G [-]City Limits G ❑ City Owned W Ll Parks ■❑ROW ■ ❑ROW (Sections) aaom ov �> G ❑University Grounds Iowa City Urban Forest Management Plan 1 20 INFRASTRUCTURE CONFLICTS During the inventory, infrastructure conflicts with existing trees were noted. This information is useful for maintenance crews when reviewing the inventory to determine tree limb clearance needs, potential issues with trees damaging utilities, and to inform future planting efforts and replacement tree selection. A total of 31,283 infrastructure conflicts were noted with the majority consisting of sidewalks (34%), vehicle (33%), and pedestrian (30%). These percentages are based on the conflicts observed and not based on the total number of trees. For example, a total of 10,550 conflicts with sidewalks were noted out of the total 31,281 conflicts observed inventory -wide. Many of these may not require immediate attention or ever cause issues requiring maintenance but it is important to understand the types and distribution of infrastructure conflicts. Figure 15. Summary of infrastructure conflicts with street and park trees 16666 9000 8601 8000 7000 E 6759 6000 5835 5000 1 '4715 4000 3000 2474 2000 11732 1 . )0 449 365 . 30 29 107 18 2 93 0 74 0 Vehicle Sidewalk Pedestrian Overhead Sign Other Fence Building Utilities Common tree and infrastructure conflicts 0 Street Park From left to right: Tree and sidewalk damage (phillymag.com), tree and wire conflicts (newtownconservators.org), and tree grate and sidewalk conflict (localecologist.org). Photos not taken in Iowa City. Iowa City Urban Forest Management Plan 1 21 Vulnerability to Emerald Ash Borer of City -Managed Trees Emerald Ash Borer (Agrilus planipennis), also simply called EAB, is a small, metallic -green, invasive wood -boring beetle native to east Asia that attacks and kills ash trees (Fraxinus spp.). Adult beetles live on the outside of trees and feed on the leaves during the summer months, while the larvae feed on the living plant tissue, the phloem and cambium, underneath the bark which ultimately kills the tree by disrupting the vascular system. EAB was first found in Iowa City in 2014 and ash tree mortality is being noticed across the City, on public and private property. The dying ash trees and removals has raised additional awareness and concern from the general public. Since 2014, the City has been managing and addressing the impacts from EAB and has recently identified trees to consider treating. Using the tree inventory data, the criteria for considering treatment for ash trees includes ash trees between 9 inches and 35 inches in diameter, in good condition, and not conflicting with utilities. City staff have identified a total of 400 trees that meet this criteria and are considering treatment. Ongoing public outreach is underway and educational materials are being updated and provided to the public. Learn more about EAB at https://www.icgov.org/emeraIdashborer. Information about the City's EAB response guidelines, outreach methods, cost -share opportunities, and additional charts are found in Appendix H. The following charts summarize the ash tree population within the City's street and park inventory. These include all trees with the common name ash, white ash, green ash, and black ash. Manchurian ash are not included in the summaries as they are not susceptible to EAB and mountain ash is not a true ash (Sorbus genus, not Fraxinus). The tree inventory software app should be used to prioritize EAB monitoring and management. 2000 1500 1000 500 0 Figure 16. Condition classes of ash trees Figure 18. Key characteristics for ash (Fraxinus) tree and emerald ash borer (Agrilus planipennis) ID Photo Source: www.csfs.colostate.edu Excellent Good Fair Poor Critical/Dead Not Specified ■ Ash n Black ash ■ Green ash ■ White ash 1200 1000 800 600 400 200 0 0-3in Figure 17. DBH distribution of ash trees 3-6in 6-12in 12-18in 18-24in 24-30in >30in N/A Ash Black ash ■ Green ash - White ash There are a total of 3,515 ash trees in the inventory database, of which 2,300 are street trees. The charts show that of the four ash species in the tree inventory, 1,685 are in fair condition (of which 1,128 are street ash) followed by 1,492 in good condition. 44 are in critical or dead condition and 271 are in poor condition. The ash trees are primarily in the 6-12in DBH range with 984 trees (540 street ash) followed with 758 in the 12-18in range. Green ash have the highest count (2,726) in the inventory compared to other ash species. Iowa City Urban Forest Management Plan 1 22 A r _ Iowa City Urban Forest Management Plan 1 22 Possible Planting Sites Summary The 2016-2018 inventory also included the mapping of potential planting sites that meet the minimum spacing, soil volume, proximity to utilities, etc. as defined by the City and listed in Appendix B. This was only completed for sites adjacent or within the right-of-way. If a site met these parameters, the only information tracked was the location and the qualitative size of the site; Proposed Site — Large, Proposed Site — Medium, and Proposed Site -Small. There were a total of 3,274 Small Sites, 1,137 Medium Sites, and 562 Large Sites inventoried. Discussion and recommendations for how to prioritize and use the location information is found in the goals and strategies section. The location of these sites is in the map below or the link below provides a view of the active map. Figure 19. Location and size of planting sites (https://pg-cloud.com/IowaCity/?scenario=PlantingSites) Tree Plotter - Iowa City 0000 Tools Slats. Data Otflins Add Mai, Lug DO p`ne Legand e ..n.rna•r Layer) Trees Display by: status Symbology: N.ane I a a Showing 2,000 of 4,972 sites. M27 To ., All *Proposed Site-Large(562) i f(DProposed Site - Medium (1,137) aralvil'le - W *Proposed Site -Small (3,273) Pie L erSJfY �-i-'snn" .I� CK)a City i meal ve,. 0 ❑ City Limits ❑ City Owned i ❑Parks ■❑ROW fz��ri�ravlew) ■❑ROW(Seclions) ,z�om�aTawi ❑ University Grounds 9-, — e© Examples of the types of planting sites inventoried shown in Google Street View Iowa City Urban Forest Management Plan 1 23 The following sections utilized the information and data that was analyzed and summarized to develop the strategies in this Plan. The following sections will provide the City with the methods for pursuing urban forest management goals and measuring progress towards optimal levels of management. These optimal performance indicators are listed in the tables below for the Vegetation Resource, Resource Management, Community Framework, and Institutional Framework for Iowa City's urban forest. The cells in the table that are in bold font and darker green/grey represent the City's current status. Using these Performance Indicators that follow and the methods for monitoring (listed in the next section) will guide the City towards preserving and enhancing the urban forest over a 20 -year timespan. Following this section, a 5 -year strategic plan is provided. The strategies are listed within four goals and measures for monitoring achievement are provided in the Adaptive Management & Monitoring section. This process allows the City to gauge progress towards optimal Performance Indicators allowing for adaptive management and short-term strategies with long term impacts. 6 SVA CITY'S 20 -YEAR FRAMEWORK FOR URBAN FOREST MANAGEMENT. V1 Fewer than five No species No species No species Establish a diverse Tree species species dominate represents represents represent and resilient tree diversity the entire tree more than 20% more than more than population citywide population of the entire tree 15% of the entire 10% of the entire citywide population citywide tree population tree population citywide citywide V2 1 of 6 DBH ranges 2 of 6 DBH ranges 4 of the 6 DBH 6 of the 6 DBH Provide for uneven Diameter match the match the ranges match the ranges match the aged distribution of McPherson Ideal McPherson Ideal McPherson Ideal McPherson Ideal Distribution trees in the Distribution % (+/- Distribution % (+/- Distribution % (+/- Distribution % (+/- citywide City 2%) 2%) 2%) 2%) V3 Less than 30% of 31- 60% of trees 61- 85% of trees Greater than 85% Healthy trees live Street and trees rates as good rated as good rated as good of trees rated as longer, park tree health condition health condition. health condition good health produce greater no. health condition of benefits (includes pest and reduce costs and disease) associated with maintenance V4 No planting of 10% of inventoried 50-75% of 100% of inventoried Addition of trees ad Planting and street trees. planting sites are inventoried planting planting site are value, benefits and stocking levels Abundant vacant planted (-500 sites are planted planted (^2,500 — improved function. planting sites trees) 3,750 trees) Based on —5,000 planting sites along within or adjacent to street ROW V5 Less than 50% of 50%-75% of trees More than 75% of At least 90% of the Establish a tree Climate trees are of species are of species trees are of species trees are of species population change considered suitable considered considered suitable for Iowa City suitable for the resiliency for Iowa City suitable for Iowa for Iowa City City's urban City environment and resilient to climate change Iowa City Urban Forest Management Plan 1 25 R1 Existing urban Comprehensive Strategic multi- A comprehensive A comprehensive Urban forest forest management plan for publicly tiered plan for urban forest urban forest management plan limited in owned and public and private management plan management plan scope and managed urban urban forest for private and plan for private and implementation forest resources are resources is public property is public property is accepted and accepted accepted and integrated into implemented and implemented implemented with plans for with adaptive adaptive sustainability management management mechanisms mechanisms R2 Funding for reactive Consistent funding Consistent funding Consistent private Develop and Citywide management for proactive to provide for net and public funding maintain adequate funding management increase in urban to sustain maximum and consistent forest benefits urban forest funding to benefits implement the urban forest management plan R3 No training for Certified arborist Certified arborist Multi -disciplinary Employ and train City urban urban forestry staff on staff with regular and professional professional team adequate forestry professional forester on staff within the urban Professional staff to staffing development with regular forestry unit implement professional citywide urban development and forest management support staff plan R4 No information Publicly and Ecosystem structure The ecological Management Management about publicly or privately owned and function in structure and decisions are based of publicly and privately owned natural areas are publicly function of all upon a detailed privately- natural areas identified in a and privately- publicly owned and understanding owned natural generalized owned natural privately -owned of the ecological areas "natural area areas is natural areas are structure and survey" or similar documented documented and function of all document used in making publicly and management privately -owned decisions natural areas R5 No urban forest Policies in place to Policies in place to Integrated The benefits derived Urban forest protection policy protect public protect public and municipal wide from the urban protection portion of the private portions of policies that ensure forest are ensured policy urban forest the urban forest the protection of by the development with enforcement the urban forest on implementation and and both public and enforcement of the enforcement private land and are urban forest consistently management enforced and plan supported R6 Sample -based Complete inventory Complete inventory Complete inventory Complete inventory Urban forest inventory of publicly of publicly owned of publicly owned of the urban forest of the urban forest inventory owned urban trees trees and sample of resource resource to direct public-private forest privately -owned its management, urban forest included age distribution, species mix, tree condition, and assessment Iowa City Urban Forest Management Plan 1 26 R7 Tree planting and Tree establishment Tree establishment Tree planting and Tree planting and Tree planting establishment is is directed by needs is directed by needs establishment establishment is and ad hoc derived from a tree derived from a tree program are driven directed establishment year) inventory inventory and is by the UFMP by objective on public and sufficient to meet objectives for criteria set in the private land canopy cover canopy cover, urban forest objectives species diversity, management plan and species distribution objectives to ensure urban forest sustainability R8 Highest priority All high priority All high priority Proactive mature Maintain public High risk tree removals only are removals and some removals and most tree care (lightning safety and the maintenance addressed within 5 immediate pruning immediate pruning protection, cabling, longevity of the years of notice is addressed within is addressed within etc.) is conducted trees and the 2 years of notice 2 months of notice and risk is greatly reputation of the reduced except urban forest after storm events program R9 The condition of No citywide public Complete public Inventory of public All publicly Public tree the urban forest is tree condition tree inventory trees includes managed condition unknown assessment/ including tree risk detailed tree risk trees are free of assessment remediation information. ratings; risk recognizable and program. Request -based/ abatement program hazards abatement Request reactive risk is in effect citywide based/reactive abatement eliminating system program system. hazards using a Use of work order work order software software R10 One-tenth of large One-eighth of large One-fifth of large One-third of large Improve tree Routine tree trees are pruned on trees are pruned on trees are pruned on trees are pruned on health, longevity, pruning a 5 -year rotation a 5 -year rotation a 5 -year rotation a 5 -year rotation public safety, and (-650 trees per (-820 trees per ("'1,300 trees per (^'2,170 trees per clearance conflicts. year) year) year) year) Based on ^32,600 trees >6" DBH R11 No young tree One-fifth of small One-third of small Young tree training trees are training trees are training maintenance pruned (-500 trees). pruned (-820 Newly planted trees trees). Newly are training pruned planted trees are within 10 years of training pruned at planting 3-4 years of planting One-half of small trees are training pruned (^'1,235 trees). Newly planted trees are training pruned at 3 years of planting Improve the structure trees at an early age to reduce future maintenance costs and issues. Based on —12,350 trees <6" DBH Iowa City Urban Forest Management Plan 1 27 R12 No ash tree Ash tree management for management EAB is in place R13 Tree species are Tree site considered in suitability planting site selection R14 Recognition of Invasive plant invasive species species management R15 Public tree condition assessment and abatement along emergency and evacuation routes R16 Canopy assessment and canopy goals The condition of trees along emergency evacuation routes is unknown No canopy assessment or a low -resolution canopy assessment (e.g. i -Canopy) is completed but no goals are set An inventory of ash Ash tree Ash tree Plan and manage trees and the management plan management plan is ash trees to reduce locations is current in place in implementation sudden widespread mortality Guidelines are in Public trees are All trees are planted Management of place for the planted in sites with in sites that will urban forest will selection of suitable adequate soil maximize current become more species to meet quality and and future benefits efficient and specific site criteria. quantity, and effective in Best practices and growing space to producing industry standards achieve their environmental, are in place growth and form social and economic potential. Private benefits owners are provided science - based standards on tree selection and site suitability Recognition of Invasive species are Invasive plant Elimination of invasive species, recognized, species invasive plant are actively managed, and their management plans species discouraged use is prohibited are developed and and voluntary implemented control on private for public and and public lands private lands No tree condition Sample -based tree Complete tree Emergency and assessment/ inventory including inventory evacuation routes remediation general tree risk which includes will be clear during program along information along detailed tree failure the on -set of storms emergency routes. emergency/ risk ratings; risk and will require Request evacuation routes. abatement minimal clearing based/reactive Risk abatement is program is in effect of woody debris system not systematic eliminating hazards following a storm along emergency/ event evacuation routes High-resolution High-resolution ................................... High-resolution Understand canopy canopy assessment canopy assessment canopy assessment cover distribution is completed but no and goals are and goals are citywide and set goals are set completed and the completed and the goals to increase existing canopy existing canopy canopy cover equals 25- cover equals 50- 50% of the goal 75% of the goal R17 No standards or Standards in place Standards and best Tree best practices in but outdated and practices are in preservation place little adherence and place and city best practices enforcement forester is contacted to oversee site plan. City forester is included in the design, placement, and construction or repair of structures and utilities Street trees near any excavation, demolition, or construction of any building, structure, or utility are preserved or protected Iowa City Urban Forest Management Plan 1 28 C1 General awareness of the urban forest as a community resource Urban forest seen as a community problem Urban forest seen as important to the community C2 Majority of Isolated or limited Neighborhood neighborhoods number of active cooperation Are unfamiliar with neighborhood Urban Forest groups Management Plan C3 Citizen, municipal, business, commuter interaction C4 Support by private land holders No interaction among constituencies Unfamiliar with issues Some interaction among constituencies, with conflicting goals Educational materials and advice available to landholders Urban forest Urban forest acknowledged as recognized providing as vital to the environmental, community's social, and environmental, economical services social and economic well being Majority of neighborhood associations form partnerships with city government to implement the UFMP All neighborhoods associations form partnerships with city government to implement the UFMP Informal and/or Formal interaction general cooperation with staff coordination Clear goals for tree resources by landholders. Incentives for protection and management of private trees Landholders develop comprehensive tree management plans (including funding) The general public understands the importance of the urban forest to the community At the neighborhood level, citizens understand and cooperate in urban forest management All constituencies in the community interact for the benefit from the urban forest Private landholders embrace citywide goals and objectives of the UFMP Iowa City Urban Forest Management Plan 1 29 11 Conflicting Urban forest Departments and/ Municipal standards Ensure all city City public processes among management or agencies are in place for departments agency departments and or processes are held functioning and implementing the cooperate with cooperation agencies that are in common but implementing UFMP by goals and objectives inconsistent with improvement in processes interdepartmental/ of the UFMP the urban forest cooperation among consistent with the Interagency management departments and/ UFMP on a project processes on all or agencies is specific basis municipal projects needed 12 Unfamiliar with Recognition and Implement design Implement design Design and Design and issues acceptance of and construction and construction development development issues objectives objectives that industries, and industry and consistent with the exceed UFMP other government other UFMP objectives and agencies embrace government support citywide citywide UFMP agency green infrastructure goals and objectives cooperation 13 No cooperation General Specific cooperative Shared vision and The landscape and Landscape among segments of cooperation among arrangements with goals including the arboriculture and the green industry. nurseries, tree care City use of professional industries operate arboriculture No adherence to companies, etc. standards and with high industry professional ethics professional cooperation standards and standards and ethics ethics, and commits to citywide urban forest management plan goals and objectives 14 Government and Government and Regional planning Regional natural Cooperation and Cooperation planning agencies planning agencies is in effect resource interaction among within the operate share similar policy comprehensive neighboring geographic independently vehicles planning is regional planning region coordinated agencies and governments to support forest sustainability throughout the region Iowa City Urban Forest Management Plan 1 30 ma�y«... �'. r � ♦ - . t y r %. m p 'M,' .�. a :.:. fn"91 Y �.YMI..,. •. *M � �S +� �. • J • �w XRT rt' • � � , ti � �. �r , �, . �r .'. "�e 3 ���� Vis' r e ?'' `• �N IW L �" � . a:. y]p .x ✓,r �1 y4 fir' �.. Nip. IA 40 �--�/ P , G �• fr°. .`.� «. .:moi f' � a' 1� . . g. „ Va m P r re pp - u+r li��� l�wolne ,� ari.m,.wulu� Syi`w n r . z � : � _ - �.�, � � �., •ply"� t'� � ... ;'� i x.a A'*„ w w • ,�yy,t. , .rX w., y t M w Iii AnAPTIVE MANAGEMENT Adaptive Management is a scientific approach to an urban forest management decision process. It promotes flexible decision-making that can be adjusted in the face of uncertainties as outcomes from management actions and other events become better understood. Careful monitoring of these outcomes both advances scientific understanding and helps adjust policies or operations as part of an iterative learning process. Adaptive management does not represent an end in itself, but rather a means to more effective decisions and enhanced benefits. Its true measure is in how well it helps meet environmental, social, and economic goals; increases scientific knowledge; and reduces tensions among stakeholders. Figure 20: The management plan implementation process Criteria and Performance Indicators 5 -Year 5 -Year ,t� 5 -Year / 5 -Year Management Management Management Managemen Plan #1 Plan #2 Plan #3 Plan #4 —� I I I I I I _F_r Strategies Using an adaptive management approach will require the consistent monitoring of all the City's criteria for urban forest sustainability. The City will be able to judge if its new approaches to urban forest conservation are being effective, develop relationships between management actions and outcomes, and identify significant trends. This will allow the City to adjust management actions over time as changes occur both in the physical/biological environment and in the expectations of the City's residents. The City can use the Urban Forest Sustainability & Management Audit that was provided as part of the UFMP project to evaluate each element to identify shortcomings and opportunities. View Appendix B for an overview. Few activities suggested by this strategic plan are as important to the success of urban forest management as monitoring, but this step is often overlooked, poorly designed, and often underfunded by most cities. Monitoring the City's natural resources is a process very similar to those already developed for business. The basic applications have already been developed, and there is little reason to reinvent the processes. This design for the monitoring program incorporates the principles of sampling design theory and experimental design. Careful consideration has been paid to the selection of indicators. TYPES OF MUNITOKING Monitoring here refers to the periodic and systematic measurement of observations of process or object. The City should institute three forms of monitoring in association with the Management Plan: implementation, effectiveness, and validation. 1. The implementation monitoring will determine if the Plan is being implemented as designed. It asks, "Did we do what we set out to do?" 2. Effectiveness monitoring determines if the action achieved the stated goal or objective. It asks, "Did it work?" 3. Validation monitoring determines if assumptions and models being used are valid and effective. Iowa City Urban Forest Management Plan 1 32 Implementation Monitoring The Parks and Forestry Division should review, on a semi-annual basis the implementation of the 5 -year Management Plan's Strategies. There should be a stakeholder session to discuss accomplishments and recommend strategies for accomplishing the scheduled objectives. Each year these stakeholders should jointly publish a report to be distributed to the Mayor, City Council, Department Directors, and communities. Effectiveness Monitoring The 2016-2018 street and park tree inventory serves as the beginning of the effectiveness -monitoring program. Information from Urban Forest Analysis presented in this Plan describes the present state of the urban forest. The use of the criteria and key objectives allow the City to better understand and correlate the effectiveness of its urban forest management practices and policies to reaching specific outcomes using the tree inventory analysis. Effectiveness monitoring should be conducted every 5 years. Validation Monitoring The City should maintain and update the tree inventory on a regular basis. This information will be used for the City to conduct a 5 -year analysis of the tree structure, maintenance needs, and potential risks, similarly to how it was completed for this Management Plan. RECOMMENDED MONITORING PERFORMANCE CRITERIA In the Criteria and Performance Indicators section, the table has a column "Criteria". Each row has a criterion with a reference number (i.e. V1 = 1St Criteria in the Vegetation Resource section). These reference numbers are listed for each Strategy and a Criteria Key is provided below for reference. Criteria Key V1: Tree species diversity V2: Diameter distribution of trees in the City V3: street and park tree health V4: Planting and stocking levels V5: Climate change resiliency R1: Urban forest management plan R2: Citywide funding R3: City urban forestry staffing R4: Management of publicly and privately owned natural areas R5: Urban forest protection policy development and enforcement R6: Urban forest inventory public- private R7: Tree planting and establishment on public and private land R8: High risk tree maintenance R9: Public tree condition assessment and abatement citywide R10: Routine tree pruning R11: Young tree maintenance R12: Ash tree management R13: Tree site suitability R14: Invasive plant species management R15: Public tree condition assessment and abatement along emergency and evacuation routes R16: Canopy assessment and canopy goals R17: Tree preservation best practices Cl: General awareness of the urban forest as a community resource C2: Neighborhood cooperation C3: Citizen, municipal, business, commuter interaction C4: Support by private land holders 11: City public agency cooperation 12: Design and development industry and other government agency cooperation 13: landscape and arboriculture industry cooperation 14: Cooperation within the geographic region Iowa City Urban Forest Management Plan 1 33 Vegetation Resource V1) Tree species diversity Measure: Tree inventory data in Tree Plotter and/or MS Excel or Access V2) Diameter distribution of trees in the City Measure: Tree inventory data in Tree Plotter and/or MS Excel or Access V3) Street and park tree health Measure: Tree inventory data in Tree Plotter and/or MS Excel or Access V4) Planting and stocking levels Measure: Tree inventory data in Tree Plotter and/or MS Excel or Access V5) Climate change resiliency Measure: NCAA climate zones and the tree inventory data in Tree Plotter and/or MS Excel or Access Resource Management R1) Urban forest management plan (acceptance and implementation) Measure: review by the Parks and Forestry Division R2) Citywide funding Measure: annual review by the Parks and Forestry Division R3) City urban forestry staff funding Measure: annual review by the Parks and Forestry Division R4) Management of publicly and privately -owned natural areas Measure: annual internal review of public land management to include random sampling of resources and utilize the 2018 Natural Areas Master Plan and other plans/studies R5) Urban forest protection policy development and enforcement Measure: semi-annual review of process by Parks and Forestry and review of street and park tree inventory data in tree management software relating to tree condition, observations, conflicts, etc. R6) Urban forest inventory public-private Measure: semi-annual review of process by Parks and Forestry and review the street and park tree inventory data in tree management software and future inventory data R7) Tree planting and establishment on public and private land Measure: Review of the street and park tree inventory data and future tree inventories and analysis R8) High risk tree maintenance Measure: Internal review by Parks and Forestry by field sampling and reviewing data in tree and work order management software to determine degree of risk abatement and reduction annually R9) Public tree condition assessment and abatement citywide Measure: Internal review by Parks and Forestry by field sampling and reviewing data in tree and work order management software to determine degree of risk abatement and reduction annually R10) Routine tree pruning Measure: Internal review by Parks and Forestry by field sampling and reviewing data in tree and work order management software to determine degree of risk abatement and reduction annually R11) Young tree maintenance Iowa City Urban Forest Management Plan 1 34 Measure: Internal review by Parks and Forestry by field sampling and reviewing data in tree and work order management software to determine degree of risk abatement and reduction annually R12) Ash tree management Measure: Internal review by Parks and Forestry by field sampling and reviewing data in tree and work order management software to determine degree of risk abatement and reduction annually R13) Tree site suitability Measure: Internal review by Parks and Forestry by field sampling and reviewing data in tree and work order management software to determine degree of risk abatement and reduction annually R14) Invasive plant species management Measure: Internal review of public and private lands using random sampling R15) Public tree condition assessment and abatement along emergency and evacuation routes Measure: Internal review by Parks and Forestry by field sampling and reviewing data in tree and work order management software to determine degree of risk abatement and reduction annually R16) Canopy assessment and goals Measure: Canopy will be measured citywide and by neighborhoods and other geographic boundaries and canopy goals will be set based on existing and future tree planting efforts and criteria in this Plan R17) Tree preservation best practices Measure: City forester is on site for review of construction/repair of structures and utilities that may impact the trees within the right-of-way. Sample inventory and future inventories to see if in effect. Community Framework C1) General awareness of the urban forest as a community resource Measure: Conduct a 5 -year community survey C2) Neighborhood cooperation Measure: Conduct a 5 -year community survey C3) Citizen, municipal, business, commuter, interaction Measure: Semi-annual review by Parks and Forestry C4) Support by private land holders Measure: Semi-annual review by Parks and Forestry Institutional Framework 11) City public agency cooperation Measure: Semi-annual review by Parks and Forestry 12) Design and development industry and other government agency cooperation Measure: Annual random sampling of site specific designs and implementation of future tree inventories 13) Landscape and arboriculture industry cooperation Measure: The green industry use of ANSI standards, state BMP's, state nursery grades and standards 14) Cooperation within the geographic region Measure: Semi-annual review by Parks and Forestry Iowa City Urban Forest Management Plan 1 35 a ,i Program & Data Analysis Criteria &, Measures, Performance Goals, L_Indicators & Strategies Once the Criteria and Performance Indicators were identified for the Vegetation Resource, Resource Management, Community Framework, and Institutional Framework, a series of Monitoring Criteria were developed to gauge progress towards optimal levels of urban forest management and sustainability. The first 5 -year management plan represents the initial action needed to lay the foundation for comprehensive urban forest management. Strategies for implementation in the first 5 -year Urban Forest Management Plan were chosen so that there was very minimal requirement for any net increases in operational or capital costs. These strategies have to do with the processes, procedures, ordinances, and education to support the institutional, community, and technical capacities needed to move the management of the urban forest forward. Goals and Strategies for the first 5 -Year Urban Forest Management Implementation are arranged by category. Each action is preceded by the year in which it is intended to be initiated or completed. The specific criteria addressed by each action are then listed (see the Criteria and Performance Indicators tables). Finally, the responsible or lead City agency is indicated. The following pages describe how each Goal and Strategy impacts the City's placement on the Urban Forest Criteria and Performance Indicator Spectrum. The number of Criteria and Performance Indicators affected by the Goals and Strategies reflects the efficiency of these actions. Use this as a guide to share the importance of each strategy and to determine which measure and milestone should be utilized to assess progress. Assessments and planning lead to improved maintenance, community interaction, and city tree canopy URBAN FOREST MANAGEMENT PLAN -'� C�iro� Irnrn Ciiv Image sources: Plan -It Geo photo stock Iowa City Urban Forest Management Plan 1 37 IOWA CITY'S URBAN FOREST GOALS & STRATEGIES AND THE IMPACT ON THE CRITERIA & PERFORMANCE INDICATORS (V=Vegetation Resource, R=Resource Management, C=Community Framework, 1=Institutional Framework) EDUCATION Goal One: Promote proper tree care through education and enforcement (Table 15) Year 1: Update the Planting in the Right -of -Way brochure or create a new brochure that informs and educates residents and City staff about the UFMP, the benefits of trees, and proper tree care. Criteria: • V-1,2,3,4,5 • R - 1, 4, 5, 7, 11, 13, 14, 16 • C - 1, 2, 3, 4 • 1-1,2,3,4 Responsible Agency: Forestry and Parks, Communications Year 1: Prepare and implement a Neighborhood Tree Stewardship program to educate residents on tree care and the urban forest. Utilize neighborhood associations and other partners described in the UFMP. Criteria: • V-1,2,3,4,5 • R - 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 • C - 1, 2, 3, 4 • 1-1,2,3,4 Responsible Agency: Forestry and Parks, Neighborhood Development Services, Communications Year 1: Update and maintain the City's urban forestry webpage to include information about the UFMP and results of the inventory and program analysis for City residents. Include the Tree Plotter link and promote on social media. Criteria: • V-1,2,3,4,5 • R - 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 • C - 1, 2, 3, 4 • 1-1,2,3,4 Responsible Department: Forestry and Parks, Neighborhood Development Services, Communications Iowa City Urban Forest Management Plan 1 38 G1-4 G1-5 G1-6 G1-7 Criteria Key V1: Tree species diversity V2: Diameter distribution of trees in the City V3: street and park tree health V4: Planting and stocking levels V5: Climate change resiliency R1: Urban forest management plan R2: Citywide funding R3: City urban forestry staffing R4: Management of publicly and privately owned natural areas R5: Urban forest protection policy development and enforcement R6: Urban forest inventory public-private R7: Tree planting and establishment on public and private land R8: High risk tree maintenance R9: Public tree condition assessment and abatement citywide R10: Routine tree pruning R11: Young tree maintenance R12: Ash tree management R13: Tree site suitability R14: Invasive plant species management R15: Public tree condition assessment and abatement along emergency and evacuation routes R16: Canopy assessment and canopy goals R17: Tree preservation best practices Cl: General awareness of the urban forest as a community resource C2: Neighborhood cooperation C3: Citizen, municipal, business, commuter interaction C4: Support by private land holders 11: City public agency cooperation 12: Design and development industry and other government agency cooperation 13: landscape and arboriculture industry cooperation 14: Cooperation within the geographic region ORGANIZATION & MANAGEMENT Goal Two: Improve efficiencies and collaborate to propel urban forest management (Table 16) Year 1: Utilize the tree inventory and work order management software to keep data current and improve work efficiencies. Use the system to monitor progress towards optimal Vegetation Resource Performance Indicators. Criteria: • R-6, 9 Responsible Agency: Forestry and Parks Year 1: Provide training of the GIS section, tree maintenance crews, and other staff on the utilization of the citywide urban forest inventory in the tree management software. Criteria: • R-5, 17 • 1-1,2,3 Responsible Agency: Forestry and Parks, Neighborhood and Development Services Year 1: Review and update arborist standards and best practices, including tree protection and preservation during construction/repair of structures and utilities within the right-of-way. Create a document that describes these and share with other personnel responsible for overseeing design and development and tree care. See Appendix D for an example of Best Practices for Tree Preservation. Criteria: • 1-1,3 Responsible Agency: Forestry and Parks Year 1: Create a system of review and risk assessment of street, park, and public space trees that is directly tied to the work order system. Ensure all staff understand the workflow to maintain a current and accurate database of the condition and maintenance needs of trees that is tracked in the inventory software. Track all new plantings in the software as well. Criteria: • R — 6, 8, 9, 15 • I-1 Responsible Agency: Forestry and Parks Iowa City Urban Forest Management Plan 140 G2-5 G2-6 G2-7 G2-8 Criteria Key V1: Tree species diversity V2: Diameter distribution of trees in the City V3: street and park tree health V4: Planting and stocking levels V5: Climate change resiliency R1: Urban forest management plan R2: Citywide funding R3: City urban forestry staffing R4: Management of publicly and privately owned natural areas R5: Urban forest protection policy development and enforcement R6: Urban forest inventory public-private R7: Tree planting and establishment on public and private land R8: High risk tree maintenance R9: Public tree condition assessment and abatement citywide R10: Routine tree pruning R11: Young tree maintenance R12: Ash tree management R13: Tree site suitability R14: Invasive plant species management R15: Public tree condition assessment and abatement along emergency and evacuation routes R16: Canopy assessment and canopy goals R17: Tree preservation best practices Cl: General awareness of the urban forest as a community resource C2: Neighborhood cooperation C3: Citizen, municipal, business, commuter interaction C4: Support by private land holders 11: City public agency cooperation 12: Design and development industry and other government agency cooperation 13: landscape and arboriculture industry cooperation 14: Cooperation within the geographic region PLAN IMPLEMENTATION Goal Three: Build the team and the reinforcements to implemei Year 1: Coordinate a presentation and delivery of the Executive Summary to the Mayor for the consideration that directs all City agencies to actively cooperate in the implementation of the UFMP. Criteria: • This strategy supports all criteria and implementation of adaptive management process. Responsible Agency: Forestry and Parks Year 1: Prepare a draft resolution, for City Council consideration, that recognizes the UFMP as the strategic plan for the management of the urban forest in the City. Criteria: • This strategy supports all criteria Responsible Agency: Forestry and Parks Year 1: Establish an Internal Technical Advisory Committee, comprised of appointed departmental representatives. The committee will meet quarterly to review progress, as part of the adaptive management strategy, identify issues and make recommendations associated with the implementation of the UFMP. Criteria: • This strategy supports all criteria Responsible Agency: Forestry and Parks Year 2: Prepare a Land Development Regulation that requires adherence to ANSI Tree, Shrub, and other wood Plant Maintenance (A300 series). Criteria: • 1-3 Responsible Agency: Forestry and Parks Year 3: Incorporate the criteria and key objectives of the UFMP into the IC2030 Comprehensive Plan, Natural Areas Master Plan, and the Climate Action and Adaption Plan where feasible. At minimum, attend meetings in regard to these plans in order to discuss integrations and where these plans and the UFMP complement one another. Criteria: • Institutional Framework -1 Responsible Agency: Forestry and Parks Iowa City Urban Forest Management Plan 142 URBAN FORESTRY PROGRAM PROJECT FUNDING Goal Four: Seek alternative mechanisms for funding and project Year 1: Continue to apply for the MidAmerican Energy Plant Trees, Save Energy "Trees Please" grant and seek additional funding opportunities. Criteria: • V-1,4 Responsible Agency: Forestry and Parks Year 5: Contract the 5 -year urban forest inventory and analysis with state universities or private consultants. Criteria: • R-6 Responsible Agency: Forestry and Parks As stated in the Adaptive Management section, the City must approach goal implementation with a flexible decision-making process that can be adjusted in the face of uncertainties as outcomes from management actions and other events become better understood. Careful monitoring of these outcomes both advances scientific understanding and helps adjust policies or operations as part of an iterative learning process. Using an adaptive management approach will require the consistent monitoring of all the City's criteria for urban forest sustainability. The City will be able to judge if its new approaches to urban forest conservation are being effective, develop relationships between management actions and outcomes, and identify significant trends. This will allow the City to adjust management actions over time as changes occur both in the physical/biological environment and in the expectations of the City's residents. Figure described in the Adaptive Management section Criteria and Performance Indicators v t4 5 -Year Management i Plan #1 Strategies 5 -Year �H 5 -Year Management I Managemen Plan #2 1 Plan #3 I_FT 5 -Year Management Plan #4 Iowa City Urban Forest Management Plan 143 Summary & Conclusion Iowa City's 2018 Urban Forest Management Plan: Guiding the City along the Urban Forest Sustainability & Management Spectrum URBAN FOREST MANAGEMENT PLAN SUMMARY Based on the analysis of the urban forest resource and existing program, criteria and performance indicators, goals and strategies, and the measures and milestones for enhancing Iowa City's urban forest were developed and summarized. A Program & Data Analysis: Collection and review of documents, best practices, initiatives, partners, surveys, and data pertaining to and impacting the urban forest. A review of the 2016-2018 public street and park tree inventory was conducted. The street and park tree inventory data were analyzed to determine the structure, maintenance needs, potential risks, ecosystem benefits, and available planting space characteristics to inform the Plan. These results were incorporated with the Urban Forest Sustainability & Management Audit that consists of a review and ranking of 11 elements of urban forestry. This resource and 91109 program audit informed development of the criteria and performance indicators. Criteria & Performance Indicators: Indicators of urban and community forest sustainability and management allow the City to identify the current status on the spectrum and the requirements or criteria necessary to advance on a low to optimal spectrum. Criteria and performance indicators were developed based on four categories: Vegetation Resource (the trees), Resource Management (the staff), Community Framework (the people), and Institutional Framework (the inter -agencies). Measures, Goals, & Strategies: The program and data analyses established criteria and performance indicators and the goals and strategies were developed to advance the City on the Urban Forest Sustainability and Management Spectrum. The measures and milestones were established so the City can evaluate progress and adjust strategies accordingly. Iowa City Urban Forest Management Plan 144 The following provides a summary of the urban forest management planning process and outcomes. Figure 21. The benefits and values of City -managed trees $4.2 MILLION IN ANNUAL SAVINGS STORMWATER RUNOFF REDUCTION 56.3MILLION GALLONS - $1.5MILLION IN SAVINGS CARBON SEQUESTRATION 1e„ 22.4 MIL LBS STORED -13.2 MIL LBS SEQUESTERED - S168K VALUE AIR QUALITY 78 K LBS OF POLLUTANTS REMOVED - $223K VALUE ENERGY SAVINGS 6 MILLION KWH - S46oK IN SAVINGS PROPERTY VALUE $986K INCREASE IN VALUE Table 19. Summary of the 2018 Iowa City Urban Forest Management Plan 2016-2018 Inventory 25,451 street trees (based on April 2018 data) 19,563 park trees 4,972 planting sites The following summaries are forstreet and park trees unless otherwise noted Tree Diversity 66 genera, 178 species Top 5 Species Silver Maple (8%), Northern Hackberry (6%), Green Ash (6%), Crabapple (6%), and Mulberry (5%) Size Distribution >30" (7%) 12-18" (17%) 24-30" (7%) 6-12" (32%) 18-24" (10%) 0-6" (27%) Average Diameter (@4.5') 12" Tree Condition Excellent (2%) Poor (5%) Good (47%) Critical/Dead (3%) Fair (41%) Maintenance Needs Removal (5%) Training Pruning (3%) Priority Pruning (1%) None Needed (18%) Routine Pruning (72%) Removals by Size Class >30" (5%) 12-18" (19%) 24-30" (5%) 6-12" (36%) 18-24" (12%) 0-6" (23%) EMERALDBORER VULNERABILITY Ash Tree Count 3,515 Counts by Condition Excellent (16) Poor (271) Good (1,492) Critical/Dead (44) Fair (1,685) Counts by Size Class >30" (285) 12-18" (758) 24-30" (416) 6-12" (984) 18-24" (584) 0-6" (485) Distribution of Ash Street (2,300) Parks (1,215) Iowa City Urban Forest Management Plan 45 Criteria & Category Low Moderate Good Optimal Total Performance Vegetation Resource 0 3 1 1 5 Indicators (the "Urban Resource Management 2 5 7 3 17 Forest Management Community Framework 1 2 1 0 4 & Sustainability Institutional Framework 0 4 0 0 4 Spectrum") Summary Total 3 14 9 4 30 Category: Education Goal One: Promote proper tree care through education and enforcement Category: Organization & Management Goal Two: Improve efficiencies and collaborate to propel urban forest management Category: Plan Implementation Goal Three: Build the team and the reinforcements to implement the Plan Category: Urban Forestry Program Project Funding Goal Four: Seek alternative mechanisms for funding and projects to accomplish the strategies V PCoiAim rUPCC5 1 IVIHi jiAutIVICIV 1 PLAIV %.UI1JI.LUa1UI1J Ot IYCR 1 J 1 tra Iowa City's urban and community forest is a defining and valued characteristic of the City making it a desirable place to live, work, and play. It is a resource that has a history and legacy of care and management but there are existing and potential threats to this resource and areas for improvement in the care and enhancement of it. This understanding incited the action to develop the Urban Forest Management Plan. The assessment, criteria and indicators, goals and strategies, and measures for adaptive management that are presented in this Urban Forest Management Plan have been created to provide a framework to effectively, proactively, and sustainably manage the urban forest. This Plan should be disseminated and presented to City agencies to gain awareness, support, and assistance in its implementation. Upon acceptance of this Plan, outreach and education to the residents of Iowa City should be conducted. As implementation progresses, the City should continually evaluate their progression along the Urban Forest Sustainability and Management Spectrum using the measures and milestones provided. It is inevitable that changes will occur to the vegetation resource, the resource management, community perspectives, and institutional framework and thus, modifications of the strategies should be considered. This Plan provides the 20 -year framework to advance along the Urban Forest Sustainability and Management Spectrum. The first 5 - year management plan goals and strategies initiate this journey. Each 5 -year plan should be evaluated near the end of each term in order to develop the next 5 -year goals, strategies, measures, and milestones. While it will take additional resources and efforts to achieve the goals of the Urban Forest Management Plan, its implementation will help ensure that Iowa City's urban and community forest will continue to thrive, be valued, and provide enhanced benefits to the community and future generations. "Our vision for the future of Iowa City is to create a healthy and sustainable urban forest that is properly managed and cared for, benefiting our citizens with improved economic and environmental well-being, increasing public safety, and enabling our employees to provide cost-effective maintenance. Our urban forest will have a large variety of trees consisting of various sizes, ages, and species. The trees will be selected and maintained according to the Best Management Practices (BMPs) established by the International Society of Arboriculture (ISA)." Iowa City Urban Forest Management Plan 146 Mj q. r "Trees and forests make Iowa & communities stronger. If properly cared for, trees provide a wide variety of benefits to people, communities and the economy. An investment in our trees is an investment in our future." I Iowa D N R m tP f: 1 e� a I y v t i V r 0 11 Appendices: APPENDIX A. URBAN FOREST SUSTAINABILITY & MANAGEMENT AUDIT APPENDIX B: STREET & PARK TREE INVENTORY METHODOLOGY APPENDIX C: COUNT OF TREES BY CITY PARKS & TRAILS APPENDIX D: BEST PRACTICES FOR TREE PRESERVATION APPENDIX E: TREE MAINTENANCE BEST PRACTICES APPENDIX F: URBAN FORESTRY RESOURCES APPENDIX G: TREE & PLANTING SITE MAPS APPENDIX H: EAB MANAGEMENT GUIDELINES & COMMUNITY OUTREACH Iowa City Urban Forest Management Plan I i Appendix A. Urban Forest Sustainability & Management Audit The U.S. Urban Forest Sustainability & Management Audit was used for evaluating all categories and elements pertaining to Iowa City's urban forest to inform criteria and performance indicators, measures and milestones, goals, and strategies. . I IL L0W%-. 1V1L-1qT & RESOURCE DISCOVERY STAGE 1) Identify documents and resources pertaining to each of the categories Category & Element Management Policy and ordinances Professional Capacity and Training Funding and Accounting Decision and Management Authority Inventories Urban Forest Management Plans Risk Management Disaster Planning Practices, Standards, and BMPs Community Categories Policy Capacity Funding Authority Inventories Plans Risk disaster Practices Community 27 1 2 2 12 8 r 3 3 22 is Policy Capacity Funding Authority Inventories Plans Risk Disaster Practices Community 2) Review and list the documents and resources for each category element Management pal icy and Ordinances 1.v1 Approved Policy Statements 1.02 Climate Change [Sustainability] 1.03 No Net Loss 1.04 Risk Management 1.05 Tree Canopy Goals 1.06 Tree Protection IC2030: Comprehensive Plan Update, Section 7, page 38 & 41 low a City Climate Action and Adaptation Plan 2018-2019 Strategic Plan 4 -STAR Community Rating City Code, Title 14, Chapter 5, Article E "Landscaping and Tree Standards", 14-5E-6: PRESERVATION OF EXISTING TREES, E, Table 5E-2 "Schedule of Substitution Values" City Code, Title 6, Chapter 1, 6-1-2: PUBLIC NUISANCE DEFINED; PUBLIC NUISANCES ENUMERATED, B. "Diseased Or Damaged Trees Or City Code, Title 18, Chapter 3,18-3-2: DESIGN STANDARDS, E: "Landscape Preservation" City Code, Title 14, Chapter 5, Article E "Landscaping and Tree Standards", 14-5E-5: PROTECTION AND MAINTENANCE, B & C City Code, Title 14, Chapter 5, Article E "Landscaping and Tree Standards", 14-5E-6: PRESERVATION OF EXISTING TREES, A-E City Code, Title 10, Chapter 8,10-8-5: DAMAGE TO TREES OR PLANT MATERIALS PROHIBITED, A & B City Code, Title 10, Chapter 9: PARKS AND RECREATION REGULATIONS, 10-9-2: PROHIBITED ACTIONS IN PARKS, A 2 I T'.1 In f 1 n in n n n1 gni 1 Iowa City Urban Forest Management Plan I ii 3) Rate the level at which the City is achieving the element 1 Management Policy and Ordinances Category Com pun ent Evaluated Description or Criteria for Eva l uation Comments&Rem urces Q 1.31-1 Approved Pc l icy Statement=_. Nritten pcl icy statement=_ approved by govern rg body. Description SOC[%RrM1ievetl'i 1:31 Climate Charge Sustairabilityj Also referred to as Sustainability. With reference to urban trees. Addre sse=_.the Icrgterm. health and productivity of the natural 1 1]In Development 1.32 No Net Loss Can refertotree.s, basal area, ercanopy. 64/ 01 Not Practiced 2] Adopted Common Practic e 3 Exceeds Common Practice 1.3'3 Risk RManagement Should reference: ANSI A333 Fart B, ISA B6IF, and prioritization funding mechanism. s. 38/ Development management or 75.0/ 1.D4 Tree Canopy Goals Overall community. -campus goal, or by designated "zone". 4 41 Not Practiced Current a[tivi� oo0 .. 1.35 Tree Fretecticr C.-1—licr a rlrcr lard=_:ape mairterance. Inventories 21Adopted Common Practice 4) The level at which the City is attaining optimal levels for each category element is calculated Verify Category Standard of Care (S0Q Count 50CApplicable(Count); 1 1 1 2 2 2 SCi'C Gaal (Sum); 2 2 2 L L 4 SSC Scum; NA NA NA NA 3 NA Category SDC Attained; NA NA NA NA 75.OX NA Verify Category Base Practices (BP) Count BPApplicable (Count) 3 3 3 3 3 3 BP Coal (Sum); 6 6 6 6 6 6 BPSum; NA NA NA NA 4 NA % Category BP Attained; NA NA NA NA 615.7% NA S) Determines the level at which the City is achieving urban forest sustainability and management to inform criteria and performance indicators, measures and milestones, goals, and strategies Overall Management Evaluation Iowa City Urban Forest Management Plan I iii Sum of Evaluations Category Description SOC[%RrM1ievetl'i base{%RrM1levetl[ .. re .-all Ratiro Coerall l%irM1leue tl' 1 Management Policy and Ordinances 75.0% 66.7% 10 64/ 2 Professional Capacity and Training 100.0/ NA 6 38/ 3 Ending and Accaunting 75.0/ NA 7 58/ 4 Decision and Management Acthonty 100.0/. oo0 .. 6 7S/. 5 Inventories NA 56.3% 16 62'/. 6 urban Forest Management Plans NA 66.7% 18 75% 7 Risk Management 58.3/ 100.0/ 10 56/ B Disaster Planning NA 33.3% 5 36/ 9 Practices, Standards, and DMPs 75.0/ 81.3/ 48 83/ 10 Community 50.0/ NA 20 71/ 11 Green Asset EvalVaOon Wb --d Outcomes] NA NA 16 80% Total 76.2/ 57.7/ 170 67.5/ Iowa City Urban Forest Management Plan I iii Appendix B. Street & Park Tree Inventory Methodology The 2016-2018 street and park tree inventory, facilitated by the Parks and Forestry Division, was conducted in order to establish a baseline assessment of the City's tree structure and maintenance needs. The tree inventory crew used Plan -It Geo's Tree Plotter inventory software to collect the following information: - Location - Common Name, Latin Name, and Genus - Diameter at Breast Height (DBH, measured at 4.5') - Condition - Observations - Maintenance Needs - Park Name (if applicable) - Land Use - Infrastructure Conflicts - Presence of Wires - Risk Assessment - Date Added - User In addition to mapping of existing tree points, over 5,000 possible planting sites were mapped based on the criteria established by the City. To help future planting efforts, possible planting sites were mapped and categorized based on the available space. Though Tree Plotter has built-in functionality to reduce error, after the inventory was completed, the arborists and project managers completed a quality check (QA/QC) process to correct any misplaced tree points, erroneous data, and other inconsistencies. City staff were provided with account information to access, view, manage, update, filter, report, and export tree/planting site data. The data management, filters, and stats/charts/graphs functionality in Tree Plotter were used to complete the inventory data analysis and summaries to inform this Urban Forest Management Plan. The tree inventory software and collected tree/planting site points can be viewed at www.pg-cloud.com/lowaCity. 3 quERcus 2A96 uvAus296 Tree Plotter Software -_4 Field Inventory -_4 Data and Program Analyses -_4 Urban Forest Management Plan Iowa City Urban Forest Management Plan I iv Tarr MAINTPruANCE Nrrnc rRITPRin J% METHODOLOGY The following maintenance categories were collected: A. Immediate Removal - Trees designated as immediate removals are dead or have one or more defects that cannot be cost-effectively remedied. EAB infested and stage were noted if present. B. Removal - Trees designated as removals should be removed, but do not pose a liability as great as the immediate priority or pose minimal liability. EAB infested and stage were noted if present. C. Immediate Priority Pruning -Trees in this category require pruning to remove deadwood and/or broken branches that pose a potential risk to people or property. These trees have broken and/or hanging limbs, hazardous deadwood and dead, dying or diseased limbs or leaders greater than four inches in diameter. EAB infested and stage were noted if present. D. High Priority Pruning - Trees in this category require pruning to remove deadwood and/or broken branches that pose a potential risk to people or property. These trees have broken and/or hanging limbs, hazardous deadwood and dead, dying or diseased limbs or leaders greater than two but less than four inches in diameter. EAB infested and stage were noted if present. E. Routine Pruning - Trees in this category have characteristics that could become risks if not corrected. Deadwood is less than two inches in diameter. EAB infested and stage were noted if present. F. Training Pruning - This category includes trees less than 20 feet in height with correctable structural problems or minor amounts of deadwood that pose little or no threat of personal injury or property damage. Pruning at this stage is relatively inexpensive but can have significant effects in the future. EAB infested and stage were noted if present. PLANTIN%3 Sh < ♦,ni i & Mt i nODOLOGY Planting location - Locations where no tree exists,but fit with current city standards for a tree location. Parameters include: Minimum of 10-30 linear feet (depending on species) to the trunk of the nearest tree, minimum of 30 feet from fire hydrants, water lines, driveways and alley entrances, minimum of 10-30 linear feet (depending on species) from street light poles, 30 feet from street intersections, parkway must be at least 6 feet wide. RISK ASSESSMENT CRITERIA & METHODOLOGY A Level 2 Qualitative risk assessment was completed during the 2016-2018 inventory for street and park trees based on ANSI A300 (Part 9) standards and the protocols in the Best Management Practices: Tree Risk Assessment, published by the International Society of Arboriculture (2011). Trees are subject to various failure scenarios which help determine risk rating. The failure mode (i.e., branch, whole tree, codominant stem) with the greatest risk served as the overall tree risk rating. The specified time period for the risk assessment completed during the 2016-2018 inventory is one year. Ratings were determined by the following criteria: A. Likelihood of Failure. Identifies the most probable failure and rates the likelihood that structural defect(s) will result in failure based on observed current conditions. B. Likelihood of Impacting a Target. The rate of occupancy of targets within the target zone and any factors that could affect the failed tree as it falls toward the target. C. Categorizing Likelihood of Tree Failure Impacting a Target. The likelihood of failure and target impact are combined in the matrix below to determine the likelihood of tree failure impacting a target. Iowa City Urban Forest Management Plan I v Imminent Unlikely Probable Unlikely Possible Unlikely Improbably Unlikely Somewhat Likely Unlikely Unlikely Unlikely Likely Somewhat Likely Unlikely Unlikely Very Likely Likely Somewhat Likely Unlikely Consequence of Failure The consequences of tree failure are based on the level of target and potential harm that may occur. Consequences can vary depending upon the size of defect, distance of fall for the tree or limb, and any other factors that may protect a target from harm. Target values are subjective, but efforts were made to assess them from the City's perspective as discussed during the inventory project kickoff. Risk Rating The tree's risk rating was determined based on combining the likelihood of tree failure impacting a target and the consequence of failure in the matrix below. Very Likely Likely Somewhat Likely Unlikely Low Moderate High Extreme Low Moderate High High Low Low Moderate Moderate Low Low Low Low Iowa City Urban Forest Management Plan I vi Appendix C. Count of Trees by City Parks & Trails (Names as listed in the Tree Plotter app) Park Name Tree Count % Within test park 2 1 0.0% Tyrrell mill park 1 0.0% Trail 4 0.0% Harlocke Hill park 6 0.0% Highland park 7 0.0% Tower court park 9 0.0% Bristol drive 10 0.1% Happy hollow park 14 0.1% Reno street park 15 0.1% Weatherby park 18 0.1% Iowa city water 19 0.1% Black springs circle park 22 0.1% Frauenholtz-Miller Park 23 0.1% Creekside park 29 0.1% Iowa city soccer complex 29 0.1% Ryersons woods 29 0.1% Crandic park 30 0.2% Lower city park 31 0.2% Brookland park 36 0.2% Chadek green park 36 0.2% Sturgis ferry park 37 0.2% Fairmeadows 40 0.2% Oak grove park 42 0.2% Longfellow nature trail 45 0.2% Thornberry dog park 45 0.2% Glendale park 47 0.2% Weber elementry 56 0.3% Cardigan park 58 0.3% North Market Park 59 0.3% City of iowa city 61 0.3% Pheasant Hill park 62 0.3% Court Street trail 67 0.3% College Green 68 0.3% Villa park 70 0.4% Wetherby 80 0.4% Whispering meadows wetland park 82 0.4% Thornbury trail 105 0.5% Terrell mill park 106 0.5% Court Hill Park 166 0.8% Benton hill park 167 0.9% Windsor ridge park 175 0.9% Scott park 194 1.0% Iowa City Urban Forest Management Plan I vii Scott park trail 202 1.0% Mercer park 223 1.1% Waterworks Prairie park 283 1.4% Upper City Park 291 1.5% Hunters run park 390 2.0% Kwanis park 441 2.3% Willow Creek trail 647 3.3% Oakland cemetery 958 4.9% Sycamore trail 1027 5.2% Iowa river rc trail 1554 7.9% Willow creek park 2355 12.0% Hickory Hill park 2468 12.6% Peninsula Park 2918 14.9% Terry Trueblood Recreation Area 3605 18.4% 19563 100.0% Iowa City Urban Forest Management Plan I viii Appendix D. Best Practices for Tree Preservation The following provides an example of how to develop tree preservation best practices and standards structure, building, and utility construction or repair that is within the right-of-way and will directly or indirectly impact trees in proximately to the site. Damage to City -owned trees due to permit -holder negligence or accident shall be repaired only by the Forestry section. Forestry shall remove and replace any trees, determined to be excessively damaged. The cost of all such repairs, removals, replacements, and an amount of value lost will be the liability of the permit -holder and billed accordingly. The directional bore route is outside of the tree border and under or behind the sidewalk for this project. To preserve the tree's root system and maintain structural stability, no open cut excavation or bore pits allowed within 8 ft of City street trees. This includes Hand Holes. Boring entry and exit points should be located in areas that avoid root damage. Any tree roots encountered are to be cleanly cut using hand tools. Do not remove roots using excavation equipment. Cables, ducts, conduits, and other utilities installed in the right of way shall maintain a 5' minimum horizontal clearance from all City street trees. In order to avoid damage to tree roots, branches, and trunks of City street trees, no construction equipment or materials shall be placed, parked, or stored on any unpaved area within the drip line of any City owned tree. The City's Urban Forestry Inspector shall frequently monitor construction sites containing City street trees and any change in tree conditions will be recorded. Any questions or concerns regarding City trees contact Forestry Inspector at The top four feet of all excavations in the right of way and in all boulevard medians shall be backfilled with clean viable soil. No concrete, slurry, gravel, sand or other such material shall be used for backfill. Restoration shall be to original grade unless otherwise specified. New poles, anchors, vaults, hand holes, or other above -ground structures must be located outside the drip line of City street trees. The median islands may contain a buried irrigation system and components. Any irrigation damaged or disturbed will be reported to the Forestry Inspector. Any repairs needed will be completed by the Forestry department at the contractor's expense. Boulevard medians shall not be used to store equipment or materials. OCCUPANCY AND DEPOSIT COMMENTS FOR WHEN TREES ARE INSIDE THE PROJECT LIMITS: I normally take a deposit on any trees in the right away that might get damaged during larger projects and if trees are damaged or removed I will keep the fee. If they know the tree needs to be removed due to construction or other reasons, we will add a Forestry Service Fee to the permit giving them permission to remove the tree and charge them $100.00 per diameter inch. Examples: Iowa City Urban Forest Management Plan I ix All City street trees near any excavation, demolition, or construction of any building or structure must be sufficiently guarded and protected by those responsible for such work as to minimize potential injury to the trees and to maximize their chance for survival. There are City Street trees with in the project limits. A deposit of is required. Deposit represents equity value of City street trees in work area. Deposit will be returned upon completion of project if trees are not damaged or removed. Removal of 2 City street trees has been proposed as part this permit. The permit holder will be responsible for the cost of removing said street trees in the City's right of way. The value of the trees will be added to the permit as a Forestry Service fee. Value of tree is based on $100.00 per diameter inch of the trunk at 4 1/2 feet above ground. Private sprinkler notes: There are City of ### street trees located in the public right-of-way. These trees are maintained by the Forestry department. If, during the removal or installation of any City street trees by Forestry crews that result in damage to an irrigation system located in the public right-of-way, the Owner of said system shall bear all responsibility and costs associated with its repair. Should a private irrigation system become obsolete, nonfunctional, poorly maintained, or protruding from grade, the City may require repair or removal of all or a portion of such system within 30 days of written notice from the City to do so. If the owner fails to so repair or remove, then after two such written notices to the owner, the City may cause removal of the system at the owner's expense. Sprinkler heads are to be installed a minimum of four (4) feet away from any city owned tree. Lawn watering systems in the right of way are for personal convenience, and may be disrupted without notice at any time by the City in performance of its work. Any costs associated with such disruption including water loss, repair, and replacement shall be solely the responsibility of the owner of the watering system. Iowa City Urban Forest Management Plan I x Appendix E. Tree Maintenance Best Practices Urban forests play a significant role in maintaining the health and vitality of urban life. The urban forest provides a wealth of benefits to neighborhoods and residents through the reduction of energy consumption, the removal of pollutants from the air and water, reduction in stormwater flows, increased valuation of private property, increased worker productivity, reduction in stress and violent crime, as well as providing recreational opportunities and aesthetic diversity. At the same time stresses from the urban environment including air pollution, damage by vehicles, increased impervious surface, soil compaction, and maintenance neglect reduce the diversity and magnitude of these benefits and may lead to tree -related problems. The inherently close interaction between people and trees in cities requires active and diligent management of the urban and community tree and forest resources to ensure public safety. To enhance tree canopy and associated benefits, trees need to be properly maintained and planted. Tree Maintenance Best Practices The following provides an overview of tree maintenance best practices. It is not intended to be an extensive or comprehensive summary of best practices. All tree maintenance practices should follow the American National Standards Institute's (ANSI) A300 Standards (Parts 1-10). Reasons for Tree Pruning 1. Pruning for Safety Involves removing branches that could fall and cause injury or property damage, trimming branches that interfere with lines of sight on streets or driveways, and removing branches that grow into utility lines. Safety pruning can be largely avoided by carefully choosing species that will not grow beyond the space available to them and have strength and form characteristics that are suited to the site. 2. Pruning for Health Involves removing diseased or insect -infested wood, thinning the crown to increase airflow and reduce some pest problems, and removing crossing and rubbing branches. Pruning can best be used to encourage trees to develop a strong structure and reduce the likelihood of damage during severe weather. Removing broken or damaged limbs encourages wound closure. 3. Pruning for Form Improves the structure of trees and removes branches that are more likely to fail. Branches that are poorly attached may be broken off by wind and accumulation of snow and ice. Branches removed by such natural forces often result in large, ragged wounds that rarely seal. 4. Pruning for Aesthetics Involves enhancing the natural form and character of trees or stimulating flower production. To reduce the need for pruning it is best to consider a tree's natural form. It is very difficult to impose an unnatural form on a tree without a commitment to constant. Iowa City Urban Forest Management Plan I xi Common Types of Tree Pruning 1. Crown Cleaning Consists of the selective removal of dead, dying, diseased, and weak branches from a tree's crown. No more than 25% of the live crown should be removed in any one year, even for young trees. 2. Crown Thinning Primarily for hardwoods, thinning is the selective removal of branches to increase light penetration and air movement throughout the crown of a tree. The intent is to maintain or develop a tree's structure and form. To avoid unnecessary stress and prevent excessive production of epicormic sprouts, no more than one-quarter of the living crown should be removed at a time. If it is necessary to remove more, it should be done over successive years. Branches with strong U-shaped angles of attachment should be retained. Branches with narrow, V- shaped angles of attachment often form included bark and should be removed. 3. Crown Raising The practice of removing branches from the bottom of the crown of a tree to provide clearance for pedestrians, vehicles, buildings, lines of site, or to develop a clear stem for timber production. After pruning, the ratio of the living crown to total tree height should be at least two-thirds. On young trees temporary branches may be retained along the stem to encourage taper and protect trees from vandalism and sunscald. 4. Crown Reduction Most often used when a tree has grown too large for its permitted space. This method, sometimes called drop crotch pruning, is preferred to topping because it results in a more natural appearance, increases the time before pruning is needed again, and minimizes stress (see drop crotch cuts in the next section). Crown reduction pruning, a method of last resort, often results in large pruning wounds. Figure 22. Types of tree pruning Crown Crown Cleaning Thinning Image source: www.owentree.com +C row n Raising ;yr• Crown Reduction Iowa City Urban Forest Management Plan I xii Before Crown Crown Cleaning Thinning Image source: www.owentree.com +C row n Raising ;yr• Crown Reduction Iowa City Urban Forest Management Plan I xii Tree Pruning Cuts Pruning cuts should be made so that only branch tissue is removed and stem tissue is not damaged. To find the proper place to cut a branch, look for the branch collar that grows from the stem tissue at the underside of the base of the branch. On the upper surface, there is usually a branch bark ridge that runs parallel to the branch angle, along the stem of the tree. A proper pruning cut does not damage either the branch bark ridge or the branch collar. A proper cut begins just outside the branch bark ridge and angles down away from the stem of the tree, avoiding injury to the branch collar. Figure 23. Types of pruning cuts and the proper branch cutting technique ' l Dead Branch Living Branch rr -B lBr@nc,-,`� Branch } �• B ark ridge , ark ridge! �� � �fp Branch`�\,,� Branch collarti Y r Branch collar f collar or living- I �� 1� Fg Heading cut duction cut ordead �i4 branchesI K HARDWOODS CONIFERS Natural target pruning properly removes a branch while protecting the branch collar, which is essential for wounds to heal. First cut A, second cut B, and third cut C -D. Photo source: Pennsylvania State University Urban Forestry Extension Utility Tree Maintenance Best Practices Utility Tree Pruning Overview The city should work with the utility companies to ensure proper pruning practices are followed and that open communication between the company, the city, and the public are maintained. The International Society of Arboriculture provides guidelines for maintaining trees near power lines (Best Management Practices — Utility Pruning of Trees, G. Kempter). Maintaining power lines free of tree growth is based on a consistent, planned trimming cycle of the utility vegetation management company. This approach improves electric service to all the customers who get their power from that line. A sensible approach to trimming trees means having a thorough maintenance plan that improves the safety and reliability of electric service to residents. Residents and the city staff should not attempt to trim any vegetation growing near or on any overhead power lines. Utility Tree Maintenance Techniques 1. Directional Pruning Removes entire branches and limbs to the main trunk of the tree and future growth is directed away from the power lines. Reduction cuts are used for removing these branches and limbs and should be pruned properly back to a lateral branch that is at least one-third the diameter of the branch being removed. This allows for good wound closure and protects apical dominance and reduces sprouts. Avoid topping or rounding over trees. This removes more foliage than directional pruning, increases the number of tree wounds, stresses the tree, causes unstable decay, and increases water sprouts. 2. Right Tree Right Place Iowa City Urban Forest Management Plan I xiii Selecting the right tree for the site can reduce potential safety hazards and improve the reliability of the electric service. Smaller trees near power lines do not need to be excessively pruned and do not lose their natural form. 3. Recommended Trees Trees potentially suitable for planting adjacent to power lines includes fringetree (Chionanthus virginicus), wax myrtle (Morella cerifera), crape myrtle (Lagerstromea indica), and Japanese privet (Ligustrum japonicum). Additional species should be considered and listed in a recommended species list. Figure 24. Example of trees directionally pruned for clearance from power lines Photo source: Pennsylvania State Univ Young Tree Maintenance Best Practices Proper pruning is essential in developing a tree with a strong structure and desirable form. Trees that receive the appropriate pruning measures while they are young will require less corrective pruning as they mature. Young Tree Maintenance Techniques 1. Consider the Nature Form and Desired Growth Accentuate the natural branching habit of a tree and correct any structural problems over time, if needed, to not stress the tree. 2. Pruning in 1-2 Years after Planting Prune as little as possible after planting to ensure there are enough temporary branches to produce food for new growth of roots, trunk, and branches. Prune only dead, broken, malformed, or diseased branches. Remove codominant leaders to maintain one dominant trunk. Prune for clearance if absolutely necessary. Keep size of branch removed to less than one inch in diameter. 3. Pruning 2-3 Years after Planting Prune any dead, broken, malformed, or diseased branches. Remove any suckers from the base of the tree. Next, determine the permanent branch structure by considering: • Remove, thin, or cut back any competing leaders • Remove crossing or rubbing branches, keeping the branch that maintains the natural form • Thin excessively crowded branches but do not lions -tail • Remove branches with narrow angles between the branch and trunk (consider species) • Remove branches to maintain well -spaced branches along and around the trunk. Ideal mature trees will have lateral branches that are 18-24 inches apart (depending on species) Iowa City Urban Forest Management Plan I xiv • Avoid pruning near time of bud break • Prune flowering trees after flowering Figure 25. Example of branches to be pruned for newly planted trees to promote good structure 1. Prune competing leader 2. Prune malformed branches 3. Remove crossing branches 4. Remove water sprouts 5. Remove branches with poor angles 6. Prune broken or damaged branches 7. Prune temporary branches overtime 8. Remove suckers 9. Apply 2-3" of mulch Photo source: Pennsylvania State University Urban Forestry Extension Tree Planting Best Practices The following provides an overview of best practices that should be considered and followed before during and after planting trees. • Trees to be planted should be selected from an approved tree planting list developed to maintain and enhance species diversity that are suitable for Plant Hardiness Zone 9b and changing climates. • Planting material will conform to the latest version of the American Standard for Nursery Stock (American National Standards Institute [ANSI] Z60.1). Trees to be planted should be of standard quality or better, and should be true to name and type of their species variety. • Trees should not be planted in tree lawns less than 2 feet in width or in planting pits less than 5 feet long by 5 feet wide. • Trees should not be planted within 50 feet of any major intersection, or within 20 feet of a fire hydrant, a driveway, or a pole supporting a light. • The burlap and twine from balled -and -burlap trees should be removed from the tree and the tree pit. Wire tree baskets may remain on the root ball, but the top one-third should be clipped and removed from the planting hole. • Mulch should be placed around trees in a minimum 3 -foot circle and 3 -inch depth to protect trees from lawnmower damage and competition from turf; mulch will be kept away from tree trunks. • Newly planted trees should be irrigated weekly during droughts in the growing season for three years. Iowa City Urban Forest Management Plan I xv Appendix F. Urban Forestry Resources Local Resources • EAB - https://www.icgov.org/emeraIdashborer • Tree Plotter app - https://pg-cloud.com/lowaCity/ • Planting in the ROW brochure - https://www8.iowa-city.org/weblink/0/doc/1540628/Electronic.aspx • Tree Planting Permit - https://www8.iowa-city.org/weblink/0/doc/1480598/Electronic.aspx • Scout Projects brochure - https://www8.iowa- city.org/webIi nk/0/edoc/1564002/Scout%20Prolect%20Broch ure. pdf • DNR Urban Forestry - http://www.iowadnr.gov/Conservation/Forestry/Urban- Forestry/UrbanForestryCouncil • ISU Forestry Extension - https://www.extension.iastate.edu/forestry/ • Common trees of IA-https://www.extension.iastate.edu/forestry/iowa trees/trees/index.html • Iowa City tree removal procedure - https://www.icgov.org/city-government/departments-and- divisions/parks-and-recreation/parks-and-forestry/tree-removal • Iowa City Trail Map - https://www8.iowa-city.org/weblink/0/doc/1512414/Electronic.aspx • Design Guidebook - Maximizing Climate Adaptation Benefits with Trees Community Outreach and Education • The Nature Conservancy "Health Trees, Healthy Cities": https://www.conservationgateway.org/ConservationPractices/cities/hthc/Pages/default.aspx/training- resources US Forest Service "Outreach Services Strategies for all Communities": http://actrees.org/files/What We Do/OutreachStrategies.pdf Project Learning Tree: https://forestrV.ces.ncsu.edu/ncplt/ Emerald Ash Borer & Other Pests • Iowa DNR EAB Page: http://www.iowadnr.gov/Conservation/Forestry/Forest-Health/Emerald-Ash-Borer • IA Department of Ag "Iowa Tree Pests: http://www.iowatreepests.com/eab home.html Regional Urban Forestry • National Urban and Community Forestry Advisory Council: https://www.fs.fed.us/managing-land/urban- forests/ucf/nucfac • American Forests: http://www.americanforests.org/ • Urban Forestry Index: www.urbanforestryindex.com • Treel-ink: www.treelink.org • Trees Are Good: www.treesaregood.org • American Grove: http://thegrove.americangrove.org/ • Society of Municipal Arborists: http://www.urban-forestry.com/ • Arbor Day Foundation: www.arborday.org • Alliance for Community Trees: https://www.arborday.org/programs/alliance-for-community-trees/ • Tree Care Industry Association: http://www.tcia.org/ Tree Ordinances • Guidelines for Developing and Evaluating Tree Ordinances (automatic download): • https://ir.library.oregonstate.edu/downloads/pgl5bm22x • Sample Tree Ordinance: • https://www.arborday.org/programs/treecitVusa/documents/sample-tree-ordinance.pdf • Example Tree Contracting Specifications: https://www.springfieldmo.gov/DocumentCenter/View/11756 • Trees and Development Guidelines: http://www.a2gov.org/departments/field- operations/forestry/Pages/StreetTreesDevelopment.aspx Iowa City Urban Forest Management Plan I xvi • American Public Works Association "Urban Forestry Best Management Practices for Public Works Managers: Ordinances, Regulations, & Public Policies": https://www2.apwa.net/Documents/About/CoopAgreements/UrbanForestry/UrbanForestry-3.pdf Urban Forest Storm Preparedness • IA DNR Disaster Preparedness: http://www.iowadnr.gov/About-DNR/Social-Media-Press-Room/Disaster- Assistance Urban Forest Strike Teams: http://articles.extension.org/pages/71461/urban-forest-strike-teams APA "Hazardous Tree Management and Post -Disaster Tree Management": https://www.planning.org/research/treemanagement/ Trees and Stormwater • Urban Watershed Forestry Management: http://www.forestsforwatersheds.org/ • EPA Green Infrastructure: http://water.epa.gov/polwaste/green/upload/stormwater2streettrees.pdf • OKI Regional Council of Governments "Trees & Stormwater": http://treesandstormwater.org/ Urban Forests and Climate Change • US Forest Service "Urban Forests and Climate Change": https://www.fs.usda.gov/ccrc/topics/urban- forests-and-climate-change Tree Management Best Practices • ANSI A300 Standards: https://tcia.org/TCIA/BUSINESS/ANSI A300 Standards /TCIA/BUSINESS/A300 Standards/A300 Standar ds.aspx? h key=202ff566-4364-4686-b7c1-2a365 af59669 ANSI A300 Pruning Specification Writing Guide: https://www.tcia.org/TCIAPdfs/Resources/Arboriculture/A300TreeCareStandards/A300Pruning- SpecificationWritingGuide-20170413.pdf Trees and Utilities • Penn State Extension "Questions about Trees and Utilities": https://extension.psu.edu/questions-about- trees-and-utilities • Utility Arborist Association "Common Questions about Electric Utility Pruning": https://uaa.wildapricot.org/page-18073 • VA Cooperative Extension 'Trees and Shrubs for Problem Landscape Sites: Overhead Utility Easements" (automatic download): https://www.urbanforestrysouth.org/resources/library/ttresources/trees-and- shrubs-for-problem-landscape-sites-overhead-utility-easements/at download/file • The eXtension Foundation 'Trees for Energy Conservation": http://articles.extension.org/trees for energy conservation • Arbor Day Foundation "Energy -Saving Trees": http://energvsavingtrees.arborday.org/#About Urban Wood Utilization • http://ncufc.org/urban wood utilization introduction. php Planning Resources • US Forest Service and Davey Institute "Sustainable Urban Forest Guide": http://www.itreetools.org/resources/content/Sustainable Urban Forest Guide 14Nov2016.pdf • WI DNR "Technical Guide to Developing Urban Forestry Strategic Plans & Management Plans: http://dnr.wi.gov/topic/UrbanForests/documents/UFPlanningGuide.pdf • Municipal Urban Forestry Staff American Public Works Association "Urban Forestry Best Management Practices for Public Works Managers: Staffing": https://www2.apwa.net/Documents/About/CoopAgreements/UrbanForestry/UrbanForestry-2.pdf • Tree Boards: http://www.tufc.com/pdfs/treeboard handbook.pdf Urban Forestry Funding • Davey Resource Group "Funding Your Urban Forest Program": http://www.urban- forestry.com/assets/documents/funding-your-uf-program-jenny-guIick.pdf Iowa City Urban Forest Management Plan I xvii Alliance for Community Trees "Funding Sources": http://actrees.org/resources/tools-for- nonprofits/fundraising-tools-for-nonprofits/ Penn State Extension "Sustaining and Funding an Urban Forestry Program": https://extension.psu.edu/sustaining-and-funding-an-urban-forestry-program American Public Works Association "Urban Forestry Best Management Practices for Public Works Managers: Budgeting & Funding": https://www2.apwa.net/Documents/About/CoopAgreements/UrbanForestry/UrbanForestry-1.pdf Tree and Urban Forest Ecosystem Benefits US Forest Service i -Tree: www.itreetools.org US Forest Service Midwest Community Tree Guide: https://www.fs.fed.us/psw/publications/documents/psw gtr199/psw gtr199.pdf US Forest Service "The Urban Forest and Ecosystem Services": https://www.fs.fed.us/psw/publications/mcpherson/psw 2016 mcpherson001 livesley.pdf Tree Assessment Resources • US Forest Service Urban Tree Canopy Assessments (UTC): www.nrs.fs.fed.us/urban/utc/ • Plan -It Geo Urban Tree Canopy Assessments: http://www.planitgeo.com/urban-tree-canopy • i -Tree Canopy Assessments: https://canopy.itreetools.org/ • Plan -It Geo Tree Inventory Software: www.treeplotter.com Other Resources • American Forests "Vibrant Cities Lab": http://www.vibrantcitieslab.com/ • Urban Forestry South "Resources and Links": https://www.urbanforestrysouth.org/resources/links • ISA International Dictionary Online: https://wwv.isa-arbor.com/education/onlineresources/dictionary • Plan -It Geo Reports and Plans: https://issuu.com/planitgeoissuu Iowa City Urban Forest Management Plan I xviii Appendix G. Tree &Planting Site Maps HIGH AND EXTREME RISK TREES https://pg-cloud.com/lowaCity/?scenario=HighRiskTrees (requires an account) 000 Tree Plotter - Iowa City Tools Stats Data Offline Add Move Log Drtt Legend wok 1 . • Layer -.Trees AL SBH o zgo a Display by. Qftteo t y ,,,� Symbology: None 3-0 us 6"0 ' 2�6 z# Showing 144 of 144 sites. `., • fa f ar Toggle All oralvilie Q -_.0 • • fi� �6-121n (11) 27 %716 • •n p ✓®12-18in(37) • Q.. s E' ®• • U+! O 18-24in (30) nn • `. % ;� .; " 24-30n (27) ._...V11W�fry_ U56 Q oJiovrQ ,j L9 Q >30in (34) f 3 Invda �.. Q JQQ .e so 00 Pie '� Vrnverslty Heights � , � 2 - mow. _. .., 3 _ • �.. 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Toggle All 6-12in ®12-18in (6) 4' 018-24in (6) eC' r 2430in (6) >30in (12) Pie G ❑ City Limlls G ❑ City Owned G ❑ Parks ■❑ROW az— iT.v—) ■ ❑ ROW (Sections) v-1, Iowa City Urban Forest Management Plan I xxi TREES RECOMMENDED FOR HIGH PRIORITY PRUNING https://pg-cloud.com/lowaCitV/?scenario=HighPriorityPruningl (requires an account) 0 00 Tree Plotter - Iowa City Tools Slats Data A i nu ® o �.� o IA , � so O • O :3nive sity Heiq M1ts �� • - a ®,011*1.: � ,Sao • �' 1 04 �� • USE Q fH 1 i 5 _ a k \ i •© I 000 Offline Add Move Log Out Legend La yet', Trees Display by: DEH Symbology: None Showing 530 of 530 sites. :i Toggle All 3 -bin (S) ✓ r 6-12in (27) 012-18ir (89) J 018-24in (97) i24-30in (109) >30in (203) Pie m I -j ❑ City Limits _. ❑ City Owned r_ Parks Q ROW Zo I- rcv,e.l Iowa City Urban Forest Management Plan I xxii e LOCATION AND DBH OF ASH TREES https://pg-cloud.com/lowaCitV/?scenario=AshTrees (requires an account) 000 Tree Plotter - Iowa City 0000 Tools Stats Data Offline Atl(J Move Log Out Legend e y Layer. trees Display by: DBH Symbology: None _. `t O O Or O Showing 2,000 of 3,515 sites. coralville O 8 Q) 0 me Toggle All t3 r 0 Sin (56) O „�k O 1 © 4, 3-6in (429) 00 '30 0 O ✓ 06-12in (985) O QO O ✓ 0 1218in (757) 0 9 O 8 F 0 18 24in (584) 0 oco O + 4 J �' f 2430in (416) ® U--ty He gRc 0 © O O �O e .fi >30in (285) c0 r NIA (3) O' r7ckbo,CC � O� • tnro0��7-, �? Coo 0 0 �� ��c ;0 Coo Pie h c< 00 R� y O O� O Rny i'.O LISE OO O 0 inro % I 'Zoo. y 1 t ro 5 C. ❑ City Limits I Advance 00 Iowa City Urban Forest Management Plan I xxiii LOCATION AND SIZE OF PLANTING SITES https://pg-cloud.com/lowaCitV/?scenario=PlantingSites-Size (requires an account) 0 0 0 Tree Plotter - Iowa City Tools Stats Data �0 \... 40 2T0 f w J u_ u27 jl z .. nralaille U5218 000000 IA 27 ....Zq,iversiry..-trl+.esn-.e� us5�r ftovo 1k' OOaCity Hive rslty s � ' 4r Al i • 'a USU 0 „p a Ibre `�• ra z c' a4 Y� A ❑ City Limits Ii ❑ City Owned 1-1 E Parks MEIROW izommTovew) ME] ROW (Sections) qzo ioTovlewl ❑ ❑ University Grounds 1��Y ._ I Adlande MEM Iowa City Urban Forest Management Plan I xxiv Offline Add Move Log Out Legend e Layer Trees Display by: status Symbology: None Showing 2,000 of 4,972 sites. J Toggle All o --e * Proposed Site - Large (562) e O Proposed Site - Medium (1,137) W *Proposed Site -Small (3,273) Pie A ❑ City Limits Ii ❑ City Owned 1-1 E Parks MEIROW izommTovew) ME] ROW (Sections) qzo ioTovlewl ❑ ❑ University Grounds 1��Y ._ I Adlande MEM Iowa City Urban Forest Management Plan I xxiv Appendix H. EAB Management Guidelines & Community Outreach SUMMARIES OF ASH TREES ALONG STREETS Summary of the condition of street ash trees Up to 60" 60% SU% 30% 50% Early Aug to mid -Sept 25% 40% Up to 60" Early Aug to mid -Sept 30°% o (21.4%) 20% 20% 8°% 15% 10% 1% . 1°% ° 10% 0% (20" dbh) Early Aug to mid -Sept Granular Dinotefuran 5% Mid -April to mid-May ooa ooc Baa e�� (2%) (12" dbh) Granular Imidacloprid, Up to 36" Mid -April to mid-May Summary of the size distribution of street ash trees 6% 1% E& 0-3in 3-6in 6-12in 12-18in 18-24in 24-30in >30in F ^ Q GUIDELINES & OUTREACH APPROACH The City's approach to emerald ash borer (EAB) management and a summary of ash tree distribution is described in the Vulnerability to Emerald Ash Borer of City -Managed Trees section on page 22. This appendix provides more detail on the guidelines for EAB management and community outreach. As feasible, the City will seek to save trees that are mature but not past —75% of their expected life expectancy as determined by qualified City staff. Among the treatable trees, the City will prioritize trees that contribute the most to streetscapes, for example, at intersections and highly visible areas. The City will seek to avoid extensive eradication of ash trees along any one city block at a given time to minimize the visual, economic, and ecosystem impacts. The City will use these infestations as opportunities to increase tree diversity during replanting. The citizens of Iowa City can be informed about EAB and the management procedures, plans, options, and status on the City's website (www.icgov.org/emeraIdashborer) and through outreach materials that are in development. Citizens will be given the opportunity to treat or cost -share on the treatment of public trees that they want to save. These guidelines and approaches may be applied to future tree pest and disease issues. The City provided a presentation on the Emerald Ash Borer Response Plan in March of 2016. In the presentation, information regarding homeowner treatment options was provided. The table below summarizes the options available for homeowners to treat ash trees on their private property. Soil drench Imidacloprid Up to 60" Mid -April to mid-May or (1.47%) (20" dbh) Early Aug to mid -Sept Soil drench Imidacloprid Up to 60" Early Aug to mid -Sept o (21.4%) (20 dbh) Soil drench Imidacloprid, Up to 60" Mid -April to mid-May or Clothianidin (20" dbh) Early Aug to mid -Sept Granular Dinotefuran Up to 36" Mid -April to mid-May (2%) (12" dbh) Granular Imidacloprid, Up to 36" Mid -April to mid-May Clothianidin (12 dbh) Granular Imidacloprid Up to 36" Mid -April to mid-May Iowa City Urban Forest Management Plan I xxv is /• \� � . SS�„� 4 ' 'Y� f•�� �r � ti .a'x �'' y' � X71 �- � ,:�r� �.. �_ •�R. a {', y '�ry.' > i - - f �r�,a y .;.i i t,7 a f Y,�-� � ,r,�•'. �- '�:. \t f � S }•� � ,aid• � �r+ � �.! y F• ry*_ - I '�Y r � `Y e Jay _ '� "Ai � � � � `'' ► -' n J,''r'• � �'. [ "* "� ! � 't ) •fir ,`'. 7, _ Y� `�� � 1.1 Yn f �. �L y� x n CITY OF- IOWA CITY • �;,, `�+< ' S ' r � �'f--- , v . ,� k moi- �, ., p,� �� �y , `. Y ' !fir , • � + .�,1�. il+�:- . �� � x.: � R - .r I r aye• }+ ."G`Y _�• '�) [i {.�kf$ y 4�.. y r..itc- .# �; h�r � '� `r_ .. �' ' f ! Kr - '�,'� ,. � � f ^+i' y, '�l .d yd c y 1 '� t • ,S ` S^��,.q �f ClJfr ,:.�, Fi .r['. � .+1 y.' a�..l[ 'T-, _ 'fi ,. •, � 1_.%'�ri.� r � � � � d.: ' ,� �'' a� .rya r-` '�+' •-� f � � i ' :'� y7[eX.lr v � � `,:er � r ,�: w " Y i'' � '�w ,r 3 �'le'y'�- � �:'J� )" ,�, ��� �' �• i, Item Number: 4. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Comprehensive Annual Financial Report (CAFR) FY ended June 30, 2018 ATTACHMENTS: Description Comprehensive Annual Financial Report (CAFR) FY ended June 30, 2018 Bohnsack & Frarnmelt LLP Certified Public Accountants December 11, 2018 To the Honorable Mayor And Members of City Council City of Iowa City, Iowa Iowa City, Iowa We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Iowa City, Iowa for the year ended June 30, 2018. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter to you dated February 22, 2018. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Iowa City, Iowa are described in Note 1 to the financial statements. As described in Note 14 to the financial statements, the City changed accounting policies related to other postemployment benefits (OPEB) by adopting Statement No. 75 of the Governmental Accounting Standards Board (GASB Statement), Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, during the year ended June 30, 2018. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported as a restatement to the governmental activities, business -type activities and each major enterprise fund and nonmajor enterprise fund and internal service funds net position. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were: Other Postemployment Benefit Liability and Related Deferred Inflows of Resources and Deferred Outflows of Resources: Management's estimate of the other postemployment benefit liability is based on an actuarial valuation computed based on employee -related factors such as turnover, retirement age, and mortality. These factors and an estimated discount rate and rate of return are based upon historical and general market data. Depreciable Useful Lives of Capital Assets: Management's estimate of the useful lives of capital assets involves judgments and assumptions based on prior experience of estimated useful lives assigned. Incurred But Not Reported (IBNR) Self -Insurance Liability: Management's estimate of the IBNR liability is based on past history of claims and lag time for payment and review of subsequent payments. Net Pension Liability and Related Deferred Inflows of Resources and Deferred Outflows of Resources for the Pension Liability: Management's estimate of the net pension liability is based on its proportionate share of the total net pension liability of the Iowa Public Employees Retirement system and Municipal Fire and Police Retirement system cost-sharing multiple - employer defined benefit pension plans administered by the state of Iowa. The liability is based on an actuarial valuation computed based on employee -related factors such as turnover, retirement age, and mortality. These factors and an estimated discount rate are based on historical and general market data. Unbilled Usage of Utilities: Management's estimate for unbilled usage of utilities is based on the prior period usage by the billing cycle or a percentage of the total usage billed subsequent to period -end. Closure and Post Closure of Landfill: Management's estimate of the closure and post closure care costs for the landfill is based on a licensed engineer specialist report based on current costs, structure, and volume. We evaluated the key factors and assumptions used to develop the above estimates in determining that the estimates are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: The disclosure of commitments and contingencies in Note 12 to the financial statements refers to commitments made by the City that will have future financial impact. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 11, 2018 which is attached. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. We have also issued a report on "Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards" and a report on "Independent Auditor's Report on Compliance For Each Major Federal Program and On Internal Control Over Compliance Required by the Uniform Guidance". Our findings are included in the City's Comprehensive Annual Financial Report. Other Matters We applied certain limited procedures to management's discussion and analysis, schedule of changes in the City's total OPEB liability and related ratios, schedule of the City's net proportionate share of the pension liability, schedule of contributions to the pension retirement system and budgetary comparison schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory or statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of the City Council and management of City of Iowa City, Iowa and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Z4444e't f, —Xwx,*� LL p Moline, Illinois December 11, 2418 Sohnsack & Frommelt LLP 1500 River Drive, Suite 200 Moline, Illinois 51265 i b t CITY OF IOWA CITY A 111 L -L 4i•alEYln`'lesii Slrt-ql IL/A'J CIi}, Io%V;r 5 2 _''t0- 1 82(1 Ii19) ,5C-5{1311 f 3 1 7} 35{)• 5009 1 �X This representation letter is provided in connection with your audits of the financial statements of City of Iowa City, Iowa, which comprise the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information as of June 30, 2018, and the respective changes in financial position and, where applicable, Gash flows for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Certain represertations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small n amount could be considered material as a result of qualitative factors, We confirm, to the best of our knowledge and belief, as of December 11, 2018, the following representations made to you during your audit. Financial Statements 1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated February 22, 2018 including our responsibility for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP and for preparation of the supplementary information in accordance with the applicable criteria. 2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly classified funds and other financial information of the primary gnvernmPnt and all cnmpone.nt Units required by generally accepted accounting principles to be included A the financial reporting entity. 3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to thin preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5) Significant assumptions we used in maki-ig accounting estimates, including tho'; -, rl l:;.. s, red at fair value, are reasonable. 6) Related party relationships and transactions, including revenues, expendituresiexpenses, loans, transfers, leasing arrangements, and guarantees, end amounts receivable from or payable to related parties have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. 7) All events subsequent to the date of the financial s;-Jr.rnents and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. No ev.,r,ls, including instances of noncompliance, have occurred subsequent to the balance sheet date and thrr-.I_,q; -I thee:,,?V- of this letter that would require adjustment to or disclosure in the aforementioned financia statements or in the schedule of findings and questioned costs. 8) The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole for each opinion unit. A list of uncorrected misstatements is attached. 2. 9) The effects of all ;r!i: ,vn actual or possible litigation, claims, and assessments have been accounted for and disclosed in with U.S. GAAP 10) Guarantees, whet -,:.,r written or oral, under which the City is contingently liable, if any, have been properly recorded or disc; Information Provided 11) We have provided you with: a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statemenis s it li ,..s r[ _urds, do(21_m:eniation, and other matters and all audit or relevant monitoring reports, if any, mcci-vu-J r.Dri' x"1_1110 `iq sources. b) Additional information that you 1 1Vr F},C LIf'..` lC: t ,:,rr iis for the purpose of the audit. c) Unrestricted access to persons .�vithin (he ei;iity front whom you determined it necessary to obtain audit. evidence. d) Minutes of the meetings of City 1 :uui cil or summaries of actions of recent meetings for which minutes have not yet been prepared. 12) All material transactions have been recorded in the accounting records and are reflected in the financial statements and the schedule of expenditures of federal awards. 13) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 14) We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a) Management, b) Employees who have significant roles in internal control, or c) Others where the fraud could have a material effect on the financ.al statements. 15) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial statements communicated by employees, former employees, regulators, or others. 16) We have no knowledge of instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when preparing financial statements. 17) We have disclosed to you all known actual or possible, litigation, claims, and assessments whose effects should be considered when preparing the financial staten-ents. 18) We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. Government—specific 19) There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 20) There has been no fraud, violations of laws, regulations, contracts, or grant agreements, or abuse 21) We have i prac ,5,:` to track the status of audit findings and recommendations. 22) We have: 6,,n::ficfI to you any previous audits, attestation engagements, and other studies related to the audit objectives ,_�;7d whether related recommendations have been implemented. 23) We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for the report. 24) The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. 25) We are responsible for compliance with the laws, regulafions., and provisions of contracts and grant agreements applicable to cis, including tax or deN liirits and debt contracts; and legal and contractual provisions for reporting specific aNiviles in separaie funds. 26) There are no instances which have occurred or are likely to have occurred of fraud or noncompliance with provisions of law and regulations that we believe have a material effect on the financial statements or other financial data significant to the audit objectives, and there are no instances that warrant the attention of those charged with governance. 27) There are no instances which have occurred or are likely to have occurred of noncompliance with provisions of contracts and grant agreements what we believe have a material effect on the determination of financial statement amounts or other financial data significant to audit objectives. 28) There are no instances which have occurred or are likely to have occurred of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data ignific--jnt to the audit objectives. 29) There are no violations or possible violations of budget ordinances, lauw:, t,nd refg.,lations (including those pertaining to adopting, approving, and amending budgets), provisions of contr,_,�:i.s .j;,cl grant agreements tax or debt limits, and any related debt covenants whose effects should be considered for disctosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. 30) As part of your audit, you assisted with the preparation of the financial statements and related notes and schedule of expenditure of federal awards and proposed adjusting journal entries. We acknowledge our responsibility as it relates to those nonaudit services, including that we assume all management responsibilities; oversee the services by designating an individual, preferably within senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of the services performed; and accept responsibility for the results of the services, We have reviewed and approved and accepted responsibility for those financial statements and related notes and schedule of expenditure of federal awards. 31) The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral_ 32) The City has complied with all aspects of contractual agreements that would 'have a material effect on the financial statements in the event of noncompliance. 33) The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 34) The financial statements properly classify all funds and activities in accordance with GASB Statement No.34. 35) All funds that meet the quantitative criteria in GASES Nos. 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as rnajor are particularly important to financial statement users. 36) Components of net position (net investment in capital assets; restricted; and unrestricted) and components of fund balance (nonspendable and restricted, committed, assigned, and unassigned) are properly classified and, if applicable, approved. 37) Investments, derivative instruments, and land and other real estate held by endowments are properly valued. 38) Provisions for uncollectible receivables have been properly identified and recorded. 39) Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 40) Revenues are appropriately classified in the statement of activities within program revenues and general revenues, 41) Interlund, internal, and intra -entity activity and ::; :i .:i r, t_ ..iv e he en appropriately classified and reported. 42) Deposits and investment securities and derivative instrun-�: t:, are properly classified as to risk and are properly disclosed. 43) Capital assets, incl -di ii iifrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated. Ad) We have approp iw:tt-1y ;':<.:;!r:sed the City's policy regarding whether to first apply restricted or unrestricted resources when an e::l:; _:n s incurred for purposes for which both restricted and unrestricted net position is available and have detenriined that net position is properly recognized under the policy. 45) We are followir.g our established accounting policy regarding which resources (that is, restricted, committed, assigned, or ur assigned) are considered to be spent first for expenditures for which more than one resource classification is available. That policy determines the fund balance classifications for financial reporting purposes. 46) We have not completed the process of evaluating the impact that will result from adopting Governmental Accounting Standards City Council (GASB) Statements No. 83, 84, 87, 88, 89, and 90 as discussed in the notes to the financial statements. The City is therefore unable to disclose the Impact that adopting the new standard will have on its financial position and the results of its operations when adopted. 47) We believe that the newly adopted GASB Statement No, 75, 81, 82, 85, and 86 are properly implemented and adopted including the restatement to the governmental activities, business -type activities, and aggregate remaining fund information for the total QPEB liability and related deferred outflows of resources and deferred inflows of resources. 48) We agree w th the findings of specialists in evaluating the other post -employment benefit estimate, IPERS and MFPRSI estimates and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on independence or objectively of the specialists. 49) We believe tfiat the actuarial assumptions and methods used to measure pension and QPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances. 50) We are unable to determine the possibility of a withdrawal liability in a multiple -employer benefit plan. 51) Receivables recorded in the financial statements represent valid claims against debtors for transactions arising on or before the balance sheet date and have been reduced to their estimated net realizabie value. 52) Tax abatement agreements have been properly disclosed in the notes to the financial statements including the names of all governments involved, the gross amount and specific taxes abated. and additional commitments. Tax abatements entered into by other governments that affect our revenues have been properly disclosed in the notes to the financial statements. including the names of the governments that entered into the agreements, the specified taxes being abated, and the gross dollar amount of taxes abated during the period. 53) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed q_ --16,- lines and the methods of measurement and presentation have not changed from those used in the -prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. 54) With respect to the combining and individual nonmajor Fund financial statements and schedule of expenditures of federal awards and other supplementary information : a) We acknowledge our responsibility for presenting the con wining and individual nonmajor fund financial statements and schedule of expenditures of federal awCi-.!s and other supplementary information in accordance with accounting principles generally accepted - Jh,r United States of America, and we believe the supplementary information, including its form Li, -!c' -:r rl r 1, is fairly presented in accordance with accounting principles generally accepted in the United :;t:rfe;s of America. The methods of measurement and presentation of the combining and individu jl nonrn�:.Jor fund financial statements and schedule of expenditures of federal awards have not changed f, om thoc.ie i in the prior period, and we have disclosed to you any significant assumptions or interpretations underiV nn the measurement and presentation of the supplementary information. b) If the supplementary information is not presented with the audited financial statements, we will make the audited financial staternents readily available to the intended users of the supplementary information no later than the date we issue the supplementary information and the auditor's report thereon, 55) With respect to federal award programs: a) We are responsible for understanding and complying with and have complied with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 206, Uniform Administralive Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), including requirements relating to preparation of the schedule of expenditures of federal awards. b) We acknowledge our responsibility for presenting the schedule of expenditures of federal awards (SEFA) and the related notes in accordance with the requirements of the Uniform Guidance, ve believe the SEFA, including its form and content, is fairly presented in accordance with the Unif,-i : uidance. The methods of measurement or presentation of the SEFA have not changed from those u� .:,_s in tint r,rinr period and we have disclosed to you any significant assumptions and interpretations Lii deripin:, Tie measurement or presentation of the SEFA. c) If the SEFA is not presented with the audited financial statements, we will make the audited state inerits readily available to the intended users of the SEFA no later than the date vv:_: .:.:=. lk and the auditor's report thereon. d) We have identified and disclosed to you all of our government programs and relaters @ctivities subject to the Uniform Guidance compliance audit and included in the SEFA, expenditures made during tine =audit period for all awards provided by federal agencies in the form of federal awards, tederal cost - reimbursement contracts, loans, loan guarantees, property (including donated surplus property), coofierative agreements, interest subsidies, insurance, food commodities, direct appropriations, arid other direct a sistance_ e) We are responsible for understanding and complying with, and have complied with, the reguirernents of federal statutes. regulations, and the terms and conditions of federal awards related to eacli of oi.ir f scleral programs and have identified and disclosed to you the requirements of federal statutes, reg..ilations, and the terms and conditions of federal awards that are considered to have a direct and materiel effect on each major program. f) We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance for federal programs that provides reasonable assurance that we are managing our federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a material effect on our federal programs. We believe the internal control system is adequate and is functioning as intended. g) We have made available to you all federal awards (including amendments, if any) and any other correspondence with federal agencies or pass-through entities relevant to federal programs and related activities_ h) We have received no requests from a federal agency to audit one or more specific programs as a major program. We have complied with the direct and material compliance requirements (except for noncompliance disclosed to you), including when applicable, those set forth in the OMB Compliance Supplement, relating to federal awards and confirm there were no amounts questioned and no known noncompliance with the direct and material compliance requirements of federal awards. j) We have disclosed any communications from federal awarding agencies and pass-through entities concerning possible noncompliance with the direct and material compliance requirements, including commumcations received from the end of the period covered by the compliance audit to the date of the auditor's report. k) We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, including findings received and corrective actions taken from the end of the period covered by the compliance audit to the date of the auditor's report. 1) Amounts claimed or used for matching were determined in accordance with relevant guidelines in Ot'd1C's Uniform Guidance (2 CFR part 200, subpart E), m) We have disclosed to you our interpretation of compliance requirements that may have varvinrl interpretations. n) We have made available to you .all documentation related to compliance with the ill Cc;i rr,_.._:ri_.i compliance requirements, including information related to federal program financial reports -cnii ci advances and reimbursements.. a) We have disclosed to you the nature of any subsequent events that provide addi:ir:, ,:;', i _ c . about conditions that existed at the end of the reporting period affecting noncorgpliana _ c'n it? i J r:: reporting period. p) There are no <uch k iuvvii n ,l, rices of noncompliance with direct and material compliance requirements that occur,o-d ;ubse(:l_ient to th period covered by the auditor's report. q) No ch nqe_. Iic]vE-; been made in internal control over compliance or other factors that might significantly affect internal control, including any corrective action we have taken regarding significant deficiencies or material weaknesses in internal control over compliance, subsequent to the period covered by the auditor's report. r) Federal prograrn financial reports and claims for advances and reimbursements are supported by the books and records from which the firmancial statements have been prepared. s) The copies of federal program financial reports provided you are true copies of the reports submitted, or electronir-ally transmitted, to the respective federal agency or pass-through entity, as applicable. t) We have monitored subrecipients, as necessary, to determine that they have expended subawards in compliance with federal statutes, regulations, and the terms and conditions of the subaward and have met the other pass-through entity requirements of the Uniform Guidance. u) We have issued management decisions for audit findings that relate to federal awards made to subrecip ents and such management decisions have been issued within six months of acceptance of the audit report by the Federal Audit Clearinghouse. Additionally, we have followed-up ensuring that the subrecip ent has taken timely and appropriate action on all deficiencies detected through audits, on-site reviews, and other means that pertain to the federal award provided to the subrecipient. v) We have considered the results of subrecipient audits and have made any necessary adjustments to our books and records. w) We have charged costs to federal awards in accordance with applicable cost principles. x) We are •espons Lyle for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by the Uniform Guidance and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass- through entities, including all management decisions. y) We are responsible for and have ensured the reporting package does not contain protected personally identifiable information. z) We are responsible for and have accurately prepared the auditee section of the Data Collection Form as required by the Uniform Guidance. aa) We are responsible for taking corrective action on each audit finding of the compliance audit and have developed a corrective action plan that meets the requirements of the Uniform Guidance,. Signature: ��' Signaturef.� r Title: I., AN ±; Title: Boh nsack & From m elt LLP Certifled Public A.=untants To the Honorable Mayor and Members of City Council City of Iowa City Iowa Iowa City, Iowa In connection with our audit of the financial statements of the City of Iowa City, Iowa as of and for the year ended June 30, 2018, we identified deficiencies in internal control over financial reporting (control deficiencies). A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A deficiency in design exists when a control necessary to meet the control objective is missing, or when an existing control is not properly designed so that even if the control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or qualifications to perform the control effectively. A material weakness is a deficiency or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Following is a description of identified control deficiencies that we determined did not constitute significant deficiencies or material weaknesses: Housing Department -Housing Voucher Program 1. The City allocates administrative and payroll costs between federal programs within the Housing Department based on federal grant revenue. The allocation percentages have not been formally reviewed and recalculated in a few years. To ensure the allocation between programs continues to be a proper method and estimate of actual activities, we suggest the City annually document the review and calculation of the allocation and adjust accordingly. Federal grant programs are required to comply with Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements For Federal Awards. Section 200.403 provides the requirements specific to compensation and the documentation of compensation charged to a federal program. This section includes, "budget estimates (i.e. estimates determined before the services are performed) alone do not qualify as support for charges for Federal awards, but may be used for interim accounting purposes provided that .... the non -Federal entity's system of internal controls includes processes to review after -the -fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated." The City has nine full-time equivalents charged to the Housing Department and only one split - funded employee. The federal programs within the department are charged payroll based on an allocation determined from daily job duties and assignments. There is not a formal annual process documenting the review of the allocations in comparison to actual time. We recommend the City formally document the review and calculations of the compensation allocation comparison to actual annually as described in Title 2 U.S. Code of Federal Regulations. This communication is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those specified parties. Moline, Illinois December 11, 2018 �-�"'' r,,,r .,. �,�� +CYz rte', �,_ ,.,�»,..a"" 1►.. �►�_'�►� 1"r "-�,. `'..: M _ 74, r4000 zed 0 COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 309 2018 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA Introductory Section Tab CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2018 Page INTRODUCTORY SECTION Tableof contents................................................................................................................................ I Letterof transmittal............................................................................................................................ 3 Certificate of Achievement for Excellence in Financial Reporting ................................................... 12 Cityorganizational chart .................................................................................................................... 13 Cityofficials....................................................................................................................................... 14 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT......................................................................................... 15 MANAGEMENT'S DISCUSSION AND ANALYSIS.................................................................... 19 BASIC FINANCIAL STATEMENTS Government -wide financial statements Statementof net position............................................................................................................. 30 Statementof activities.................................................................................................................. 33 Fund financial statements Balance sheet — governmental funds............................................................................................ 34 Reconciliation of the balance sheet of the governmental funds to the statement of net position 35 Statement of revenues, expenditures, and changes in fund balances — governmental funds ....... 36 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities..................................................................... 37 Statement of net position — proprietary funds.............................................................................. 38 Statement of revenues, expenses, and changes in fund net position — proprietary funds ............ 39 Statement of cash flows — proprietary funds................................................................................ 40 Statement of fiduciary assets and liabilities................................................................................. 41 Notes to financial statements.......................................................................................................... 42 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule — budget and actual — all governmental funds and enterprise funds— budgetary basis.................................................................................... 84 Budgetary comparison schedule — budget to GAAP reconciliation ................................... 86 Note to required supplementary information — budgetary reporting ................................... 87 Schedule of the City's proportionate share of MFPRSI net pension liability ........................ 89 Schedule of City's MFPRSI contributions............................................................... 90 Notes to required supplementary information — MFPRSI pension liability ......................... 92 Schedule of the City's proportionate share of IPERS net pension liability .......................... 93 Schedule of City's IPERS, contributions.................................................................. 94 Notes to required supplementary information — IPERS pension liability ........................... 96 Required supplementary information — schedule of changes in the City's total OPEB liability, related ratios and notes.................................................................................... 98 COMBINING FUND STATEMENTS Combining balance sheet — nonmajor governmental funds............................................................ 100 Combining statement of revenues, expenditures, and changes in fund balances — nonmajor governmentalfunds...................................................................................................................... 101 Combining statement of net position — internal service funds ........................................................ 104 Combining statement of revenues, expenses, and changes in fund net position — internal service funds............................................................................................................................................. 105 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2018 Page COMBINING FUND STATEMENTS (continued) Combining statement of cash flows — internal service fund............................................................ 106 Statement of changes in assets and liabilities — agency funds......................................................... 108 STATISTICAL SECTION (UNAUDITED) Netposition by component................................................................................................................. 111 Changesin net position...................................................................................................................... 112 Fund balances — governmental funds................................................................................................. 114 Changes in fund balances — governmental funds............................................................................... 115 General government tax revenues by source...................................................................................... 116 Assessed and taxable value of property.............................................................................................. 117 Property tax rates — direct and overlapping governments.................................................................. 118 Property tax budgets and collections.................................................................................................. 119 Principaltaxpayers............................................................................................................................. 120 Principal water system customers...................................................................................................... 122 Sales history and total water charges.................................................................................................. 123 Principal sewer system customers...................................................................................................... 124 Sales history and total sewer charges................................................................................................. 125 Ratios of outstanding debt by type..................................................................................................... 126 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............. 127 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures..................................................................................................................................... 128 Computation of direct and overlapping debt...................................................................................... 129 Legal debt margin information........................................................................................................... 130 General obligation debt annual maturity schedule............................................................................. 131 Schedule of revenue bond coverage................................................................................................... 132 Revenue debt annual maturity schedule............................................................................................. 133 Revenue debt annual maturity by funding source.............................................................................. 134 Demographic and economic statistics................................................................................................ 136 Principalemployers............................................................................................................................ 137 Full-time equivalent city government employees by function........................................................... 138 Operating indicators by function........................................................................................................ 139 Capitalassets by function................................................................................................................... 140 COMPLIANCE SECTION Independent auditor's report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government AuditingStandards............................................................................................................................. 141 Independent auditor's report on compliance for each major federal program and report on internal control over compliance required by the Uniform Guidance............................................................. 143 Schedule of expenditures of federal awards....................................................................................... 145 Notes to the schedule of expenditures of federal awards................................................................... 148 Schedule of findings and questioned costs......................................................................................... 149 2 December 11, 2018 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa 1 r 1 CITY OF IOWA CITY The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2018 is submitted herewith in accordance with the provisions of Chapter 11 of the Code of Iowa. The City's Finance Department prepared this report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rest with the City. I believe the information, as presented, is accurate in all material respects and presented in a manner designed to fairly present the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial affairs have been included. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements will be free of any material misstatement. Bohnsack & Frommelt, LLP, a firm of independent public accountants has issued an unmodified ("clean") opinion on the City's financial statements for the year ended June 30, 2018. Their opinion is included in the Financial Section of this report. The City is required to undergo an annual single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Information to comply with the Uniform Guidance and "Government Auditing Standards" is included in the Compliance Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member serves a four-year term. Elections are held every two years allowing for continuation in office of at least three members at each biennial election. The Council members are elected at large, with three members nominated from specific districts and the remaining four members nominated at large. The Council elects the Mayor from its own members for a two-year term. The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain and spend its funds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City's operating departments and supervises the administration of the City's personnel system. The City Manager supervises 494 full-time and 43 part-time permanent municipal employees and 404 temporary employees, including a police force of 83 sworn personnel and a fire department of 64 firefighters. The City Clerk is appointed by the City Council and reports to the Council. The City Clerk's Office administers the City government's documentation, City licenses and permits, and provides information from the Municipal Code and City Ordinances to the public and other City departments. The City Clerk's Office is also responsible for distributing and maintaining accurate records of all City Council proceedings. The Clerk supervises 3 full-time employees and I temporary employee. The City Attorney is also appointed by the City Council and works at the direction of the City Council. The City Attorney supervises the City Attorney's Office, including 4 Assistant City Attorneys and 2 other full-time employees. In addition, the City Attorney acts as Chief Legal Counsel to the City Council, City Manager, the various City departments and staff, and most City commissions, committees and boards. The City provides a full range of services including police and fire protection, construction and maintenance of roads, streets and infrastructure, inspection and licensing functions, a municipal airport, library, recreational activities, and cultural events. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate storm and sanitary sewer systems. The City operates a municipal off-street and on -street parking system in the downtown area. The City also operates a transit system. The annual budget serves as the foundation for the City's financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager in October. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the Council for review in December. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than March 15. The appropriated budget is prepared by fund, function (e.g., Public Safety), and department (e.g., Police). The City adopts a three-year financial plan that includes both operations and capital improvements. This three-year plan permits a more comprehensive review of the City's financial condition, allowing analysis of the current and future needs and requirements. During preparation of the plan, careful review is made of property tax levy rates, utility and user fee requirements, ending cash balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least a one-year operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. Appropriations that are not spent lapse at the end of the year. Information Useful in Assessing the Government's Economic Condition The City's economic strength is based on the educational sector, medical services, and diversified manufacturing. The University of Iowa and the University of Iowa Hospital and Clinics are the City's largest employers with over 29,700 employees. The University of Iowa had an enrollment in fall 2018 of 32,948 students, which is a decrease of 616 students from a record high of 33,564 students in the fall of 2017. The academic and research missions of the University, along with the health care services provided at its hospitals and clinics, have an extremely positive economic impact on the area. The City also has a significant number of national and international businesses, including Fortune 500 companies: ACT Inc., NCS Pearson, and Procter & Gamble. In February 2018, Procter and Gamble announced that in approximately two years they would be shifting their beauty care products production from Iowa City to their West Virginia plant. This will eventually reduce the workforce down from approximately 600 to 100 employees. This may also have an impact on nearby businesses that produce bottles and labels for this production plant in Iowa City. Procter and Gamble has added and is expanding an electric toothbrush plant in Iowa City which is expected to employ several hundred employees; it currently has added approximately 150 employees. The estimated investment in this new facility is approximately $100 million. Overall, the continued economic development efforts with the Iowa City and Coralville Chambers of Commerce, private interests, the University of Iowa, other surrounding communities, and the Iowa City Area Development Group, have produced positive results with the retention and expansion of businesses. In addition, Iowa's Creative Corridor is a seven -county alliance surrounding Iowa City and has been identified as one of the major growth areas for new business development in the State of Iowa. This Corridor gives employers workforce access to a region uniquely Iowan, founded with a manufacturing heritage, but actively seeking new frontiers and opportunities in information technology, biotechnology and bioprocessing, renewable energy, insurance and financial services, advanced manufacturing, and educational services. Continued developments within Iowa City and the region have a favorable impact upon the City's economy. As a whole, the City's economy continues to grow. Established firms continue to prosper and expand in Iowa City and there are opportunities for growth of new businesses. Overall, employment has remained steady as evidenced in the unemployment rate for Iowa City, which continues to remain low at 2.2% for the month of June 2018, as compared to 2.7% for the State of Iowa, and 4.0% for the national average. The rate of new housing construction increased in comparison to the prior year based on the number of building permits issued. This consisted of 157 new single-family houses in 2017 as compared to 172 in 2016; multi -family dwelling units added during fiscal year 2017 was 203, compared to 556 in 2016; and mixed commercial/residential developments added 150 dwelling units in 2017 versus 340 residential units in 2016. Altogether these housing additions totaled 510 units valued at $99,676,806 in 2017 versus a total of 1,068 units valued at $206,478,670 in 2016. In addition to the decrease in residential construction in 2017, the City also had a decrease in commercial construction. The value of permits for commercial construction decreased by $57,651,210 to $5,005,776 from 2016 to 2017; however, the value of remodeling permits for residential and commercial properties increased by $14,578,688 to $107,666,214 from 2016 to 2017. Although there was a decrease in building permit issuance in 2017 versus 2016, the 2016 building permit issuance was an all-time high for the City. According to the 2010 census, the population of Iowa City is 67,862. This is an increase of 5,672 or 9.1% as compared to the 2000 census. Iowa City population in 2017 is estimated to be 75,798 by the U.S. Census Bureau. The stability of the University of Iowa coupled with historically steady employment by the City's multi -sector base of manufacturing and service industries, helps to insulate the City from any significant negative economic impacts of any recessions. The City's property valuations continue to rise and along with the low unemployment rate, this is indicative of the City's relative economic stability. Major Initiatives The City of Iowa City, with the assistance of Kirkwood Community College, completed the City's Strategic Plan. The strategic planning process involved multiple steps, including gathering input from the general public, front-line City staff, department directors, and the City Council. The Strategic Plan establishes the following organizational priorities, programs, policies, and initiatives: 1. Promote a Strong and Resilient Local Economy • Undertake a comprehensive assessment of the current public transit system and implement changes to assure that the service best meets the needs of the entire community • Effectively market and grow the local food economy • Through cooperation with the Iowa City School District, Iowa Workforce Development, Kirkwood Community College, Iowa Works, and others, increase opportunities for marginalized populations and low-income individuals to obtain access to skills training and good jobs • Work with Procter & Gamble and impacted supply chain companies, local economic development organizations, and labor unions to respond effectively to the company's decision to terminate its local production of beauty care products 2. Encourage a Vibrant and Walkable Urban Core • Collaborate with the University of Iowa on its redevelopment of University -owned property located in the Riverfront Crossings District, and on improving the quality, accessibility, and use of the Iowa River Corridor • Preserve important parts of Iowa City's history by considering the designation of additional buildings as historic landmarks, and by considering the creation of a historic preservation district for part of the downtown after consulting with stakeholders • Evaluate existing strategies and consider additional actions to address the need for reinvestment in the city's existing private housing stock 3. Foster Healthy ghborhoods throughout the Citv • Modify the existing Affordable Housing Action Plan to include new strategies to improve the availability and affordability of housing in Iowa City • Embed the "Missing Middle" concept into the City's land development practices by adopting a Form Based Code for at least one (preferably two) of our neighborhoods • Ensure the next two budgets contain sufficient funds to make meaningful progress toward achieving the goals of the Bicycle Master Plan and Parks Master Plan • Complete an analysis of traffic accident data and identify actions to improve the safety of our roadways for motorists, bicyclists, and pedestrians 4. Maintain a Solid Financial Foundation • Continue to monitor the impact of the 2013 property tax reform and evaluate alternative revenue sources as determined necessary • Continue to build the City's Emergency Fund • Monitor potential changes to Moody's rating criteria and maintain the City's Aaa bond rating • Continue to reduce the City's property tax levy • Maintain healthy fund balances throughout the City's diverse operations 5. Enhance Community Engagement and Intergovernmental Relations • Experiment with innovative ways of engaging with diverse populations in person and on social media • Improve collaborative problem -solving with governmental entities in the region on topics of shared interest • Improve relationships with the executive branch and legislature by reaching out to legislators and other elected officials and working with City lobbyists 6. Promote Environmental Sustainability • Adopt an effective Climate Action and Adaptation Plan and ensure the next two budgets contain sufficient funds to facilitate achieving its goal • Support efforts to increase the reach of the Parks and Recreation Foundation 7. Advance Social Justice and Racial Equity • Support organizations and efforts that provide services to people experiencing and recovering from trauma and crisis related to mental health and substance abuse • Consider a policy to limit city business to vendors that pay all employees a wage of $10.10 or higher • Explore expanded use of a racial equity toolkit within City government, embedding it within city department and Council levels • Consider elevating hourly staff wages to $15/hour or more within two years The City Council has also promoted private investment and re -development of other targeted areas throughout the community. The areas that are currently being focused on include the Riverfront Crossings area, the Downtown District, the Towncrest commercial area, and the Riverside Drive commercial area. The Riverfront Crossing area is an initiative to revitalize the area south of Iowa City's downtown district. This area was hard hit by flooding in 2008 and ideas for improving the district were initiated as part of a combined flood mitigation plan. The new district features a riverfront park with walking and biking trails, a variety of housing options near shopping, restaurants, a state-of- the-art recital hall and recreational facilities and is a short walk to downtown Iowa City and the University of Iowa campus. The Riverfront Crossings area is anchored by a 76.8 acre park that was formerly comprised of public facilities including the City's north wastewater treatment plant. An $8.5 million hazard mitigation grant from the State of Iowa assisted the City in removing the public facilities in this area and then converting the area into a riverfront park and wetland. Construction of phases 1 through 3 of the park began in 2017 and are expected to be completed during 2018. On the north side of the Riverfront Crossing area, the University of Iowa recently constructed the Voxman School of Music. On the adjacent corner, the redevelopment of an empty lot is under construction which will include a 7 -story, mixed-use building with 40 apartment units, retail space on the street level, and office space on the second floor. An adjacent building will house a 7 -story extended stay hotel. The estimated cost of these developments is approximately $40 million and are expected to be completed in 2019. There have also been numerous public and private developments that have recently been completed in this area including a 12 -story, $33 million Hilton Garden Inn, an $102.5 million mixed-use development with a 14 -story tower and a 15 -story tower that will include the Hyatt Place hotel, apartments, retail space, and office space, and the $50460 million redevelopment of a lumber store into a 40,000 square foot brewery, restaurant, and tap room which will be flanked by nearly 300 dwelling units. The City also completed construction of a $15.3 million, 600 space parking garage in April 2017 to service growth in this area, which subsequently had 28 new townhomes constructed around it. In the Downtown District, the City completed a streetscape plan for the Central Business District which included lighting, landscaping, parking, utility improvements, art work, and pedestrian amenities. Reconstruction and enhancements for the Washington Street corridor were completed in 2017 and reconstruction of Black Hawk mini -park and the downtown pedestrian mall are currently under construction and are expected to be completed in 2019. Other buildings in the downtown that are undergoing or have recently completed major re- development include the Wilson Building and public space which is being developed into a 15 - story mixed-use development to be known as the Chauncey; this building will have 8 floors of residential units, a 35 unit hotel, two floors of commercial space, a movie theatre and a bowling alley. The project is estimated to be $49 million and is currently under construction. Also under construction is the redevelopment of the City Hall parking lot and neighboring church into 126 residential units, parking, and commercial space. The project is estimated to cost $33.4 million. Both of these projects are expected to be completed in 2019. In the Towncrest commercial area, City staff is working to facilitate redevelopment of key properties that will improve the function and aesthetic appeal of the area. The Towncrest Urban Renewal Area was developed to revitalize the Towncrest commercial district in ways that would serve existing businesses while also drawing new retailers, service providers, and consumers to the area. A major project in the area recently completed was a $7.4 million senior housing complex with 40 units which was built on the former site of a dilapidated commercial structure. Also, currently under construction is the consolidation and redevelopment of two older gas stations located on the primary intersection in this district into a new gas station/marketplace. The Riverside Drive commercial area is an area that stretches from the University of Iowa campus to the intersection of Highways 1 and 6 and is across the river from the Riverfront Crossings development area. The development of a 4 -story, $16.1 million multi-family/student housing development in the Riverside Drive area was completed in late 2016, and adjacent to this development several new retail spaces including a gas station/marketplace and additional multi - residential housing units were also constructed or renovated. The City is developing a streetscape plan for this area which will include lighting, trails, landscaping, and other amenities and improvements. Construction of the streetscape improvements began in 2018 and will continue into 2019. Near this area is the City's aging public works complex, which is being targeted for replacement and redevelopment. A plan for replacement is underway with construction of a new Public Works Facility beginning in 2018 and anticipated completion in 2019. Long-term Financial Planning It is management's intent to support the major City Council initiatives through budget appropriations, departmental operations, and employee development so that the organization as a whole is moving in the same direction. A significant influence in the preparation of the three-year financial plan (FY2018 — FY2020) was the passage of property tax reform (SF295) by the state legislature in 2013. The property tax reform bill had multiple components including a property tax rollback for commercial and industrial property, which reduced the taxable value of these property types. The bill established a State funded "backfill" to reimburse the City for lost property tax revenues due to the commercial and industrial rollback. The State "backfill" payments began in fiscal year 2015 but were capped at the fiscal year 2017 levels for years thereafter. The cumulative reduction in commercial and industrial property tax revenues due to this rollback are estimated to be $17,181,000 between fiscal year 2015 to fiscal year 2024, and the maximum reimbursement from the State during that time period would be $16,572,000 for a net loss in revenues of $609,000. For fiscal years 2015 through 2018, the City received actual State "backfill" payments for the commercial and industrial rollback totaling $6,257,898. This bill also limited the annual taxable valuation growth of residential and agricultural property to 3 percent, instead of the previous limit of 4 percent. The impact of this provision is that the taxable percentage of residential property is expected grow at a slower pace. Without this change, the estimated taxable percentage of residential property was estimated to be 60.85% in fiscal year 2024. With this provision in place, the estimated taxable percentage in fiscal year 2024 is estimated to be 55.11%, a reduction of 5.74%. Based on the assessed value of residential property in Iowa City, the cumulative loss is estimated to be $21,560,000 from fiscal year 2015 to fiscal year 2024. The City will not receive any money from the State due to lost revenue from this provision. SF295 also established a multi -residential property classification that includes mobile home parks, assisted living facilities, and property primarily intended for human habitation. A gradual rollback will be applied to these properties to eventually tax them similarly to residential property, rather than commercial, by fiscal year 2024. The estimated cumulative loss from fiscal year 2015 to fiscal year 2024 is $15,945,500, which will not be reimbursed by the State of Iowa. Fiscal year 2017 was the first year for this new class of property, and the estimated lost revenue from this provision in fiscal year 2017 was $946,740; the estimated loss in fiscal year 2018 is $1,200,714. Due to the passage of SF295, the City estimates its net revenue losses to be $5,872,655 for fiscal years 2015 through 2018. The cumulative net revenue loss from fiscal years 2015 through 2024 is estimated to be $38,115,000. It is possible that this could affect the City's ability to finance services at current levels without finding other revenue sources or more efficient ways to deliver services. The City's long-term financial planning strategy is to promote targeted economic development, diversify its revenue structure, control spending and create efficiencies, and to build adequate reserves and contingencies into its financial structure. In addition, the City is annually reviewing and adjusting its user fees, service charges, and fine structures to try to maintain all of its major enterprise funds with a positive net income after depreciation but before capital contributions, transfers, and extraordinary items. The City also continues to strive to reduce the City's property tax levy rate to be competitive for economic development purposes. In fiscal year 2013, the City's property tax levy rate was $17.269 per $1,000 of assessed value. The property tax levy rate has been reduced for five consecutive years to $16.183 in fiscal year 2019. This has been a reduction of $1.086 per $1,000 of assessed value or 6.29% over that time period. In looking at expenses for the FY 18 — FY20 Financial Plan and FY 19 operating budget, the City will generally experience increased expenditures; however, at a modest pace. Bargaining unit cost -of -living wage increases are approximately 2.00% to 2.60% each year; however, the budgeted full time equivalents (FTE) has decreased from 607.66 in FY15 to 605.54 in FY19. In addition, public safety pension contribution rates increased slightly in FY19 but are projected to decrease slightly in FY20. The City has averaged an increase in its health insurance premium rates of approximately 3.11% over the previous six years, and is not projecting any dramatic changes to this trend in FY19 or FY20. Employee contributions, deductibles, and out-of-pocket maximums are expected to increase in both FYI and FY20. In balancing the budget for the three-year period, the City attempted to mitigate the growth of costs while continuing to provide high quality services by identifying and eliminating redundancies within the organization, examining existing and potential new revenue sources, strategically funding new programming and economic development to ensure strong property values, providing for necessary improvements to existing infrastructure, and upholding fiscal integrity by maintaining adequate cash reserves. 10 Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (the Certificate) to the City of Iowa City, Iowa for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2017. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. The Certificate is valid for a period of one year only. The City has received the Certificate for the last thirty-three consecutive years. I believe our current report continues to conform to the Certificate requirements and I will submit it to GFOA to determine its eligibility for another certificate. In addition, the City received the GFOA's Award for Distinguished Budget Presentation for its annual appropriated budget beginning July 1, 2018. In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient or outstanding in several categories including policy documentation, financial planning, and organization. This is the seventh consecutive year the City has received this award. Responsibility and Acknowledgments The Department of Finance prepared the Comprehensive Annual Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2018. The City Council, as required by law, is responsible for the complete and accurate preparation of the City's Comprehensive Annual Financial Report. I believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds of the City. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the City's Finance Department. I would like to express my appreciation to all members of the department who assisted and contributed to its preparation. I want to especially recognize the contributions of the City's Controller, Nicole Knudtson-Davies, Assistant Controller, Sara Sproule, Senior Accountants, TaraLynne Atkins and Angie Ogden and Senior Payroll Accountant, Chris Hurlbert. Also, I thank the Mayor, members of the City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a dedicated, responsible, and progressive manner. Respectfully submitted, Dennis Bockenstedt Director of Finance 11 0� Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Iowa City Iowa 11 -or its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2017 Executive Director/CEO 12 City of Iowa City Organization Chart Community Airport I (4 I City ClerkI I Library Commission �' Board Airport City Attorney City Manager City Clerk Library Airport Operations City Attorney City Manager City Clerk Library Operations Communications Office Library Foundation Human Resources Human Rights Economic Development Fire Parks & Senior Police Recreation Center Administration Administration Emergency Operations Support Services Administration Senior Center Fire Prevention Field Operations Recreation Operations Training Park Maintenance Cemetery Finance Administration Accounting Purchasing Revenue Risk Management Information Technology Services Neighborhood & Development Services Administration Development Services Neighborhood Services Metropolitan Planning Organization of Johnson County 13 Public Works Administration Engineering Streets Wastewater Water Resource Management Equipment Transportation Services Administration Parking Public Transportation Mayor Council Member and Mayor Pro Tem Council Member Council Member Council Member Council Member Council Member City Manager City Clerk City Attorney CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2018 ELECTED OFFICIALS Jim Throgmorton Pauline Taylor Rockne Cole John Thomas Kingsley Botchway II Susan Mims Mazahir Salih APPOINTED OFFICIALS Geoff Fruin Kellie Fruehling Eleanor Dilkes DEPARTMENT DIRECTORS Assistant City Manager Director of Neighborhood Development Services Library Director Director of Public Works Director of Transportation Services Senior Center Coordinator Fire Chief Parks and Recreation Director Director of Finance Chief of Police 14 Ashley Monroe Tracy Hightshoe Susan Craig Ron Knoche Darian Nagle Gamm LaTasha DeLoach John Grier Juli Seydell Johnson Dennis Bockenstedt Jody Matherly Term Expires January 2, 2020 January 2, 2020 January 2, 2020 January 2, 2020 January 2, 2022 January 2, 2022 January 2, 2022 Date of Hire November 28, 2011 July 10, 2000 March 18, 1996 December 1, 2016 August 27, 2001 July 28, 1975 April 28, 1999 May 21, 2008 July 31, 2018 August 10, 1992 January 4, 2016 February 15, 2013 January 23, 2017 Financial Section Tabs Bvhnseck & Frommeit LLP Certified Public Accountants Independent Auditor's Report To the Honorable Mayor and Members of City Council City of Iowa City, Iowa Iowa City, Iowa Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 15 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of June 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 14 to the basic financial statements, the City implemented Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. As a result, the City's net positions for governmental activities and business -type activities, and the aggregate remaining fund information has been restated. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, schedule of changes in the City's total OPEB liability and related ratios, schedules of the City's proportionate share of the net pension liabilities for pension retirement systems, and schedules of the City's contributions for pension retirement systems on pages 19-29 and 84-98, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements, schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and the other information, including the introductory and statistical sections, are presented for purposes of additional analysis and are not a required part of the basic financial statements. 16 The combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information of the combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2018 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Moline, Illinois December 11, 2018 17 (This page left blank intentionally.) 18 Management's Discussion and Analysis As management of the City of Iowa City, we present this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2018. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmittal, which can be found on pages 3 — 11 of this report. Financial Highlights • The assets and deferred outflows of resources of the City of Iowa City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year ending June 30, 2018 by $651,667,000 (net position). Of this amount, $136,743,000 (unrestricted net position) may be used to meet the government's ongoing obligations to its citizens and creditors. • The City's total net position increased by $21,828,000 during the fiscal year. Governmental activities increased by $15,620,000 and business -type activities increased by $6,208,000. • At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $101,810,000, a decrease of $4,571,000 in comparison with the prior year. Of this total amount, approximately $28,478,000 or 28.0% is unassigned and available for spending at the City's discretion. • At the end of the current fiscal year, the City's unassigned fund balance for the General Fund was $28,516,000 or 59.2% of total General Fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide Financial Statements: The government -wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets and deferred outflows of resources, liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include Public Safety, Public Works (roads and traffic controls), Culture and Recreation, Community and Economic Development, General Government, and Interest on long-term debt. The business -type activities of the City include Airport, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water. The government -wide financial statements may be found on pages 30 — 33 of this report. 19 Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same function reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and ou�flows of spendable resources, as well as on balances ofspendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements and is typically the basis that is used in developing the next annual budget. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. The City has six major governmental funds: General Fund, Other Shared Revenue and Grants Fund, Employee Benefits Fund, Other Construction Fund, Bridge, Street and Traffic Control Construction Fund, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non -major governmental funds is combined into a single aggregated presentation and are referenced under a single column as "Other Governmental Funds". Individual fund data on each of these non - major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 34 — 37 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its Airport, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds financial statements provide the same type of information as the government -wide financial statements, only in more detail. Parking, Transit, Wastewater Treatment, Water, Sanitation, Stormwater and Housing Authority are considered to be major funds and are reported individually throughout the report. The only non -major enterprise fund, Airport, is listed as non -major on the basic proprietary fund financial statements. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 38 — 40 of this report. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City's own programs and therefore are not reflected in the government -wide financial statements. The City has one fiduciary fund: Project Green, which is maintained as an agency fund. 20 The basic fiduciary funds financial statements can be found on page 41. Notes to Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 42 - 82 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non - major governmental funds and internal service funds are presented immediately following the notes. Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $651,667,000 at the close of the fiscal year ended June 30, 2018. By far, the largest portion of the City's net position reflect its investment in capital assets (e.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Iowa City's Net Position June 30, 2018 (amounts expressed in thousands) 21 Governmental Business -type activities activities Total 2017 2017 2017 2018 (not restated) 2018 (not restated) 2018 (not restated) Current and other assets $ 192,519 $ 190,352 $ 120,389 $ 119,968 $ 312,908 $ 310,320 Capital assets 248,011 226,143 335,893 335,064 583,904 561,207 Total assets 440,530 416,495 456,282 455,032 896,812 871,527 Deferred outflows ofresources 12,114 13,131 2,806 2,345 14,920 15,476 Long-term liabilities outstanding 114,709 112,931 62,121 68,385 176,830 181,316 Current and other liabilities 14,738 11,042 6,730 4,379 21,468 15,421 Total liabilities 129,447 123,973 68,851 72,764 198,298 196,737 Deferred inflows of resources 60,984 58,062 783 799 61,767 58,861 Net position: Net investment in capital assets 157,106 183,651 294,109 285,912 451,215 469,563 Restricted 41,490 47,676 22,219 21,238 63,709 68,914 Unrestricted 63,617 16,264 73,126 76,664 136,743 92,928 Total net position $ 262,213 $ 247,591 $ 389,454 $ 383,814 $ 651,667 $ 631,405 21 A portion of the City's net position, $63,709,000 or 9.8%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net position, $136,743,000 or 21.0%, may be used to meet the government's ongoing obligations to its citizens and creditors. At the end of the fiscal year ended June 30, 2018, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. The following is a more detailed review of FYI 8's operation. Governmental Activities: Governmental activities increased the City's net position by $15,620,000. The increase in net position of governmental activities is primarily due to receiving grants to fund expenses for operations and capital assets. The total revenues for governmental activities for FY18 were $88,464,000. Governmental activities are primarily funded through taxes, $61,752,000 or 69.8%, and grants and contributions, $11,704,000 or 13.2%. Taxes increased from the prior year by $1,301,000, mostly due to increased property taxes which was due to an increase in the taxable value of all property. Grants and contributions decreased from prior year by $9,076,000 which is due to City's expenses for a large flood mitigation project that were reimbursed in the prior year. Expenses for governmental activities totaled $74,658,000. Governmental activities are tracked by function including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and General Government. In FY18, Public Safety accounted for the highest portion of governmental expenses, $25,191,000 or 33.7%, and increased over the prior year due to increases in salaries and benefits. Culture and Recreation expenses of $16,363,000 or 21.9% made up another large portion of the governmental expenses and increased over the prior year due mainly to an increase in pension expense. Public Works expenses of $12,813,000 or 17.2% made up the third highest portion of governmental expenses and increased due to increases in salaries and benefits. Business -type Activities: Business -type activities increased the City's total net position by $6,208,000. The increase in net position was primarily from the Parking and Transit funds. The increase in Parking is due to the sale of land. The increase in Transit is due to grants to purchase buses. For all business -type activities, revenues exceeded expenses by $8,022,000. Revenues for business -type activities totaled $65,014,000. The primary revenue source for business -type activities is charges for services, $42,208,000 or 64.9%. In addition for FY18, the City's business type -activities had a significant portion, $18,416,000 or 28.3%, of their revenues from grants and contributions used to help fund operation and capital projects for business -type activities. The total expenses for business -type activities in FY18 were $56,992,000. Wastewater Treatment represented the highest portion of business -type activities, $11,392,000 or 20.0%, with Housing Authority, $9,535,000 or 16.7%, Water, $9,472,000 or 16.6%, Sanitation, $9,408,000 or 16.5%, and Transit, $8,071,000 or 14.2%, making up the remainder of the majority of business -type activities expenses. 22 City oflowa City's Changes in Net Position (amounts expressed in thousands) The graphs on the following pages represent a breakdown of revenue by source and expenses by program area for governmental and business -type activities. 23 Governmental Business -type activities activities Total 2017 2017 2017 2018 (not restated) 2018 (not restated) 2018 (not restated) Revenues: Program Revenues: Charges for services $ 7,297 $ 8,412 $ 42,208 $ 41,231 $ 49,505 $ 49,643 Operating grants and contributions 10,245 10,828 11,230 10,836 21,475 21,664 Capital grants and contributions 1,459 9,952 7,186 4,799 8,645 14,751 General Revenues: Property taxes 59,046 57,649 - - 59,046 57,649 Other taxes 2,706 2,802 2,706 2,802 Grants and contributions not restricted to specific purposes 1,547 1,583 - - 1,547 1,583 Earnings on investments 2,368 1,397 1,496 938 3,864 2,335 Gain on disposal of capital assets 140 2,151 2,438 69 2,578 2,220 Other 3,656 3,369 456 1,260 4,112 4,629 Total revenues 88,464 98,143 65,014 59,133 153,478 157,276 Expenses: Public safety 25,191 24,002 - - 25,191 24,002 Public works 12,813 12,032 12,813 12,032 Culture and recreation 16,363 15,525 16,363 15,525 Community and economic development 12,019 8,253 12,019 8,253 General government 6,858 6,124 6,858 6,124 Interest on long-term debt 1,414 1,481 - - 1,414 1,481 Wastewater treatment - - 11,392 11,233 11,392 11,233 Water 9,472 8,921 9,472 8,921 Sanitation 9,408 9,123 9,408 9,123 Housing authority 9,535 8,798 9,535 8,798 Parking 5,590 4,620 5,590 4,620 Airport 1,680 1,402 1,680 1,402 Stormwater 1,844 2,432 1,844 2,432 Transit - - 8,071 7,263 8,071 7,263 Total expenses 74,658 67,417 56,992 53,792 131,650 121,209 Change in net position before transfers 13,806 30,726 8,022 5,341 21,828 36,067 Transfers 1,814 (7,053) (1,814) 7,053 - - Change in net position 15,620 23,673 6,208 12,394 21,828 36,067 Net position beginning ofyear, as restated 246,593 223,918 383,246 371,420 629,839 595,338 Net position end ofyear $ 262,213 $ 247,591 $ 389,454 $ 383,814 S 651,667 S 631,405 The graphs on the following pages represent a breakdown of revenue by source and expenses by program area for governmental and business -type activities. 23 Governmental Activities FY2018 Revenue by Source Misc. Charges for Other Taxes Other 3% services 7% 8% Property taxes 67% Grants and Contributions 15% Business -Type Activities FY2018 Revenue by Source Misc. Other Grants and 7% Contributions 28% Charges for services 65% KI 24 25 Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds: The financial reporting focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be/is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions effective with the June 30, 2011 financial statements. Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. As of the fiscal year ended June 30, 2018, the City's governmental funds reported combined ending fund balances of $101,810,000, a decrease of $4,571,000 in comparison with the prior year. Of this total amount, $28,478,000 constitutes unassigned fund balance, which is available to use as working capital for the General Fund since property tax revenues are received only twice a year and the remainder is available to meet the future needs of the City. The remainder of the fund balance is not available for new spending because of constraints imposed externally by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed internally on the specific purposes for which these amounts can be spent. The restricted fund balance of $65,975,000 or 64.8% contains external restraints on its use. The committed and assigned fund balances of $4,962,000 or 4.9% and $1,437,000 or 1.4%, respectively, have been identified by the City to be used for specific purposes. The nonspendable fund balance is $958,000 or 0.9%, which the City is contractually required to maintain intact or cannot be spent because it is in a nonspendable format, such as inventories. The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2018, the unassigned fund balance of the General Fund was $28,516,000 while General Fund's total fund balance was $37,650,000. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 59.2% of total General Fund expenditures of $48,191,000, while total fund balance represents 78.1% of that same amount. During the current fiscal year, the fund balance of the City's General Fund decreased by $4,446,000. This is due to transfers out to other funds. The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $15,098,000, a decrease of $439,000. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The fund balance in the Other Construction Fund was $26,752,000, a decrease of $604,000. This fund accounts for the construction or replacement of other governmental general capital assets, such as administrative buildings, with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. The change in these fund balances is due to transfers out to other funds. The ending fund balance of the Debt Service Fund was $8,609,000, an increase of $853,000, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). The ending fund balance of the Employee Benefits Fund was $2,847,000, an increase of $326,000 due to an increase in property tax revenues. 26 Proprietary Funds: The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The ending net position of the enterprise funds was $373,385,000, an increase in net position of $5,633,000. This was primarily due to capital contributions of federal and state grants to fund capital improvement projects and transfers of business -type capital assets from governmental capital project funds. Of the enterprise funds' net position, $294,109,000 is net investment in capital assets. Unrestricted net position totaled $57,057,000, a decrease of $4,113,000 compared to the previous year. The Internal Service funds showed net position totaling $40,949,000 as of June 30, 2018, an increase of $1,472,000 primarily due to operating income in the Equipment Reserve Fund to build up reserves for future capital outlay. Budgetary Highlights The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine functional areas as required by state statute, not by fund or fund type. The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues by $7,592,000 or 5.2% to a total of $152,606,000 and the expenditure budget by $74,315,000 or 42.9% to a total of $247,645,000. These increases were due primarily to capital projects in governmental and business - type funds because of timing of completion of projects. Capital Assets and Debt Administration Capital Assets: The City's investment in capital assets for its governmental and business -type activities as of June 30, 2018 amounts to $583,904,000, net of accumulated depreciation. This investment in capital assets, including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater and water systems, and other infrastructure represents the value of resources utilized to provide services to its citizens. The City's investment in capital assets for the fiscal year ended June 30, 2018 increased by $21,868,000 for governmental activities compared to the prior year and increased by $829,000 for business - type activities from the prior year. The following table reflects the $583,904,000 investment in capital assets, net of accumulated depreciation. Land Buildings Improvements other than buildings Machinery and equipment Infrastructure Construction in progress Total City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Activitie s 2018 2017 $ 30,894 $ 29,778 38,998 39,464 Business -type Activitie s 2018 2017 $ 30,317 $ 30,737 69,855 73,297 Total 2018 2017 $ 61,211 $ 60,515 108,853 112,761 3,766 3,954 4,220 4,341 7,986 8,295 17,279 16,686 10,396 7,470 27,675 24,156 114,792 113,494 205,809 209,505 320,601 322,999 42,282 22,767 15,296 9,714 57,578 32,481 $ 248,011 $ 226,143 $ 335,893 $ 335,064 $ 583,904 $ 561,207 27 Major capital asset events during the current fiscal year included the following: Work was completed for Phase 1 of the Riverfront Crossings Park. This park was constructed on the old wastewater plant site and it will also serve as a floodable area/wetlands area. The construction in progress balance at the beginning of the year was $382,000. Additional expenses of $2,727,000 were added in FY 18. The total cost of the project that was capitalized was $3,109,000 and is funded primarily by the state. The Iowa Flood Mitigation Board approves funding for flood mitigation projects using either sales tax increments or funds appropriated by the General Assembly. Expenses for a variety of street and bridge construction were moved into construction in progress at the end of FY 18 for a total balance of $48,008,000. This construction in progress includes $46,356,000 for the Iowa City Gateway Project, which will reconstruct and elevate Dubuque Street and Park Road Bridge to provide flood protection. Additional information on the City's capital assets can be found in Note 4 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $94,730,000. Of this amount, $51,880,000 comprises debt backed by the full faith and credit of the City. $4,435,000 or 8.5% of these bonds is debt that will be paid with Tax Increment Financing revenues. $42,850,000 represents revenue bonds secured solely by specific revenue sources. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business -type Activities Activities 2018 General obligation bonds $ 51,880 Revenue bonds 15,065 Total $ 66,945 2017 2018 2017 $ 51,645 $ - $ - 15,200 27,785 32,820 $ 66,845 $ 27,785 $ 32,820 2018 $ 51,880 42,850 $ 94,730 Total 2017 $ 51,645 48,020 $ 99,665 The City issued $11,995,000 of General Obligation bonds during FYI 8. This increase in debt was offset by the retirement of debt for a net decrease of City's total bonded debt by $4,935,000. The City continues to have the same excellent bond rating on its General Obligation bonds that it has had for the past several years. This rating is given to those bonds judged to be of the best quality and carrying the smallest degree of investment risks. The City's bond ratings by Moody's Investors Services, Inc. as of June 30, 2018 were as follows: General obligation bonds Wastewater treatment revenue bonds Water revenue bonds Aaa Aa2 Aa2 The City continues to operate well under the State debt capacity debt limitations. State statute limits the amount of debt outstanding to 5% of the assessed value of all taxable property in Iowa City. Debt subject to the debt limit includes general obligation debt and revenue bonds issued pursuant to Iowa Code Chapter 403 (tax increment). The current debt limitation for the City is $274,723,000. With outstanding debt applicable to this limit of $92,432,000 we are utilizing 33.6% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. 28 Economic Factors and Next Year's Budget and Rates The City expects continued constraints by the State's property tax formula. The State passed property tax reform, which will negatively affect the City's general operating funds. Without the potential for new revenue sources, like those mentioned above, the City's opportunities for new initiatives are limited. The Council has established a budget where expenditures exceed revenues by $2.3million in the General Fund for FY19 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed valuation for FYI is provided below: General Levy $ 8.100 Debt Service Levy 3.229 Employee Benefits Levy 3.344 Transit Levy 0.950 Liability Insurance Levy 0.290 Library Levy 0.270 Total City Levy $ 16.183 Requests for Information This report is designed to provide a general overview of the City of Iowa City's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to City of Iowa City, Finance Department, 410 East Washington Street, Iowa City, IA, 52240. 29 CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION June 30, 2018 (amounts expressed in thousands) Assets Equity in pooled cash and investments Receivables: Property tax Accounts and unbilled usage Interest Notes Internal balances Due from other governments Prepaid item Inventories Assets held for resale Restricted assets: Equity in pooled cash and investments Capital assets: Land and construction in progress Other capital assets (net of accumulated depreciation) Total assets Deferred Outflows of Resources Pension related deferred outflows OPEB related deferred outflows Total deferred outflows of resources Liabilities Accounts payable Contracts payable Accrued liabilities Interest payable Deposits Advances from grantors Due to other governments Notes payable Noncurrent liabilities: Due within one year: Employee vested benefits Capital lease obligation Bonds payable Due in more than one year: Employee vested benefits Net pension liability Other post employment benefits liability Notes payable Capital lease obligation Bonds payable Landfill closure/post-closure liability Total liabilities Governmental Business -type Activities Activities Total $ 109,860 $ 63,520 $ 173,380 59,538 - 59,538 817 3,660 4,477 920 647 1,567 5,304 397 5,701 (16,069) 16,069 - 4,067 1,327 5,394 810 97 907 602 733 1,335 562 - 562 26,108 33,939 60,047 73,176 45,613 118,789 174,835 290,280 465,115 440,530 456,282 896,812 11,477 2,561 14,038 637 245 882 12,114 2,806 14,920 5,168 2,402 7,570 3,663 1,407 5,070 4,193 479 4,672 134 520 654 952 1,819 2,771 124 - 124 29 103 132 475 - 475 1,253 424 1,677 - 545 545 9,612 5,269 14,881 987 302 1,289 38,867 8,966 47,833 5,472 2,117 7,589 211 - 211 - 11,413 11,413 58,307 23,826 82,133 - 9,259 9,259 $ 129,447 $ 68,851 $ 198,298 30 (continued) CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION (continued) Deferred inflows of resources Unavailable revenues: Pension related deferred inflows OPEB related deferred inflows Deferred amount on refunding Succeeding year property taxes Total deferred inflows of resources Net position Net investment in capital assets Restricted for or by: Employee benefits Capital projects Debt service Police Other purposes Bond ordinance State statute Future improvements Grant agreement Unrestricted Total net position June 30, 2018 (amounts expressed in thousands) Governmental Business -type Activities Activities Total $ 1,565 $ 475 $ 2,040 246 95 341 - 213 213 59,173 - 59,173 60,984 783 61,767 157,106 294,109 451,215 3,119 3,119 21,463 21,463 8,423 8,423 283 283 4,469 - 4,469 - 13,111 13,111 5,876 5,876 - 100 100 3,733 3,132 6,865 63,617 73,126 136,743 $ 262,213 $ 389,454 $ 651,667 The notes to the financial statements are an integral part of this statement. 31 32 Functions/Programs: Governmental activities: Public safety Public works Culture and recreation Community and economic development General government Interest on long-term debt Total governmental activities Business -type activities: Wastewater treatment Water Sanitation Housing authority Parking Airport Stormwater Transit Total business -type activities Total CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2018 (amounts expressed in thousands) Program Revenues Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions $ 25,191 $ 4,438 $ 272 $ 15 12,813 62 8,572 1,095 16,363 836 16 322 12,019 441 1,385 27 6,858 1,520 - - 1,414 - - - 74,658 7,297 10,245 1,459 11,392 12,626 Activities Activities 1,913 9,472 9,473 - 483 9,408 10,014 3 22 9,535 323 9,065 - 5,590 5,648 - - 1,680 348 72 49 1,844 1,560 2 892 8,071 2,216 2,088 3,827 56,992 42,208 11,230 7,186 $ 131,650 $ 49,505 $ 21,475 $ 8,645 General revenues: Property taxes, levied for general purposes Hotel/motel tax Gas and electric tax Utility franchise tax Grants and contributions not restricted to specific purposes Earnings on investments Gain on disposal of capital assets Miscellaneous Transfers Total general revenues and transfers Changes in net position Net position beginning of year, as restated Net position end of year The notes to the financial statements are an integral part of this statement. 33 Net (Expense) Revenue and Changes in Net Position Governmental Business -type 3,147 Activities Activities Total $ (20,466) $ $ (20,466) (3,084) (3,084) (15,189) (15,189) (10,166) (10,166) (5,338) (5,338) (1,414) (1,414) (55,657) (55,657) $ 262,213 $ 389,454 $ 651,667 3,147 3,147 484 484 631 631 (147) (147) 58 58 (1,211) (1,211) 610 610 60 60 3,632 3,632 (55,657) 3,632 (52,025) 59,046 - 59,046 1,046 1,046 684 684 976 976 1,547 - 1,547 2,368 1,496 3,864 140 2,438 2,578 3,656 456 4,112 1,814 (1,814) - 71,277 2,576 73,853 15,620 6,208 21,828 246,593 383,246 629,839 $ 262,213 $ 389,454 $ 651,667 CITY OF IOWA CITY. IOWA BALANCESHEET GOVERNMENTAL FUNDS June 30, 2018 (amounts expressed in thousands) The notes to the financial statements are an integral part of this statement 34 Special Revenue Capital Projects Bridge, Other Street, and Shared Traffic Other Revenue and Employee Other Control Debt Governmental General Grants Benefits Construction Construction Service Funds Total Assets Equity in pooled cash and investments $ 36,321 $ 3,708 $ 2,696 $ 11,919 $ 12,630 $ 7,834 $ 2,260 $ 77,368 Receivables: Property tax 34,973 - 12,165 - - 12,029 371 59,538 Accounts and unbilled usage 496 21 - - 205 - - 722 Interest 276 8 - 117 103 168 6 678 Notes 1,276 - - - - 362 3,666 5,304 Advances to other funds - - - - - 111 - 111 Due from other governments 1,941 653 299 262 753 - 108 4,016 Inventories - 81 - - - - - 81 Prepaid item 726 - 84 - - - - 810 Assets held for resale 562 - - - - - - 562 Restricted assets: Equity in pooled cash and investments 1,904 1,207 17,088 5,852 57 26,108 Total assets $ 78,475 $ 5,678 $ 15,244 $ 29,386 $ 19,543 $ 20,561 $ 6.411 $ 175,298 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 1,492 $ 223 $ 1 $ 1,213 $ 1,316 $ - $ 382 $ 4,627 Contracts payable - - - 1,311 2,352 - - 3,663 Accrued liabilities 1,391 96 2 - 19 - 23 1,531 Advances from other funds - 111 - - - - - 111 Due to other governments 29 - - - - - - 29 Interest payable 5 - - - - - - 5 Notes payable 475 - - - - - - 475 Liabilities payable from restricted assets: Deposits 947 5 - - - - - 952 Advances from grantors 113 6 5 124 Total liabilities 4,452 441 3 2,529 3,687 405 11,517 Deferred inflows of resources Unavailable revenues: Succeeding year property taxes 34,764 - 12,095 - - 11,952 362 59,173 Grants 9 1 - 13 753 - 26 802 Other 1,600 299 92 5 1,996 Total deferred inflows of resources 36,373 1 12,394 105 758 11,952 388 61,971 Fund balances: Nonspendable 793 81 84 - - - - 958 Restricted 1,942 5,155 2,763 26,752 15,098 8,609 5,656 65,975 Committed 4,962 - - - - - - 4,962 Assigned 1,437 - - - - - - 1,437 Unassigned 28,516 (38) 28,478 Total fund balances 37,650 5.236 2,847 26,752 15.098 8,609 5,618 101,810 Total liabilities, deferred inflows of resources and fund balances $ 78,475 $ 5.678 $ 15,244 $ 29,386 $ 19.543 $ 20,561 $ 6,411 $ 175,298 The notes to the financial statements are an integral part of this statement 34 CITY OF IOWA CITY RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2018 (amounts expressed in thousands) Total governmental fund balances $ 101,810 Amounts reported for governmental activities in the statement of net position are different because: Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Other long-term assets are not available to pay for current period expenditures and therefore are unavailable in the funds: Grants and other receivables - Earned but unavailable. Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Pension and OPEB related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period and therefore are not reported in the funds. Deferred outflows of resources Deferred inflows of resources Net pension liabilities are not due and payable in the current period and therefore are not reported in the funds. Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. Accrued post employment benefit liabilities are not due and payable in the current period and therefore are not reported in the funds. Bonds payable are not due and payable in the current period and therefore are not reported in the funds. Notes payable are not due and payable in the current period and therefore are not reported in the funds. Accrued interest on bonds Internal balance due to integration of internal service funds Total net position of governmental activities The notes to the financial statements are an integral part of this statement. 35 40,949 2,798 235,805 $ 11,667 (1,722) 9,945 (37,449) (2,126) (5,191) (67,919) (211) (129) (16,069) $ 262,213 CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Use of money and property Miscellaneous Total revenues Expenditures Current Public safety Public works Culture and recreation Community and economic development General government Debt service: Principal Interest Capital outlay Total expenditures For the Year Ended June 30, 2018 (amounts expressed in thousands) 22,762 - 591 7 - - - 23,360 1,871 5,885 - 446 1,850 - - 10,052 13,099 - - 1,109 - - - 14,208 2,785 492 - 5,352 - - 2,445 11,074 5,550 - 377 29 - 61 - 6,017 - - - - - 11,895 - 11,895 - - - - - 1,570 - 1,570 2,124 344 5,331 20,426 28,225 48,191 6,721 968 12,274 22,276 13,526 2,445 106,401 Excess (deficiency) of revenues over Special Revenue Capital Projects (under) expenditures (1,106) 2,598 10,701 (11,452) Bridge, (287) 1,817 (19,168) Other Financing Sources (Uses) Other Street, and Issuance of debt Shared - - 5,258 Traffic 55 Other 11,995 Sale of capital assets Revenue and Employee Other Control Debt Governmental 140 General Grants Benefits Construction Construction Service Funds Total $ 35,363 $ - $ 10,908 $ - $ - $ 12,700 $ 2,782 $ 61,753 2,734 - - - - - - 2,734 3,786 8,656 292 371 127 332 1,380 14,944 1,465 422 316 43 49 - - 2,295 695 - - - - - - 695 1,164 85 - 245 184 207 52 1,937 1,878 156 153 163 477 48 2,875 47,085 9,319 11,669 822 837 13,239 4,262 87,233 22,762 - 591 7 - - - 23,360 1,871 5,885 - 446 1,850 - - 10,052 13,099 - - 1,109 - - - 14,208 2,785 492 - 5,352 - - 2,445 11,074 5,550 - 377 29 - 61 - 6,017 - - - - - 11,895 - 11,895 - - - - - 1,570 - 1,570 2,124 344 5,331 20,426 28,225 48,191 6,721 968 12,274 22,276 13,526 2,445 106,401 Excess (deficiency) of revenues over (under) expenditures (1,106) 2,598 10,701 (11,452) (21,439) (287) 1,817 (19,168) Other Financing Sources (Uses) Issuance of debt 17 - - 5,258 6,665 55 - 11,995 Sale of capital assets 140 - - - - - - 140 Premiums on issuance of bonds - - - 104 131 1 - 236 Transfers in 10,138 1,092 - 6,413 15,603 1,084 336 34,666 Transfers out (13,635) (4,975) (10,375) (927) (1,399) (1,129) (32,440) Total other financing sources and (uses) (3,340) (3,883) (10,375) 10,848 21,000 1,140 (793) 14,597 Net change in fund balances (4,446) (1,285) 326 (604) (439) 853 1,024 (4,571) Fund Balances, Beginning 42,096 6,521 2,521 27,356 15,537 7,756 4,594 106,381 Fund Balances, Ending $ 37,650 $ 5,236 $ 2,847 $ 26,752 $ 15,098 $ 8,609 $ 5,618 $ 101,810 The notes to the financial statements are an integral part of this statement. 36 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2018 (amounts expressed in thousands) Net change in fund balances - total governmental funds $ (4,571) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets $ 27,549 Capital assets contributed 945 Depreciation expense (6,877) 21,617 Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net position. Debt issued (11,995) Premium on bonds issued (236) Repayments of debt 11,895 Amortization of premium 156 (180) Because some revenues will not be collected for several months after the City's year end, they are not considered available revenues in the governmental funds. (284) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in accrued compensated absences 2 Pension expense (1,429) Change in accrued post employment benefit liability (432) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 897 Change in net position of governmental activities $ 15,620 The notes to the financial statements are an integral part of this statement. 37 CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2018 (amounts expressed in thousands) Business -type Activities - Enterprise Fiends Wastewater Housing Nonmajor Parking Transit Treatment Water Sanitation Stormwater Authority Airport Total Governmental Activities - Internal Service Assets Current assets: Equity in pooled cash and investments $ 12,971 $ 6,979 $ 14,856 $ 8,223 $ 14,762 $ 1,550 $ 3,929 $ 250 $ 63,520 $ 32,492 Receivables (net of allowance for uncollectibles): Accounts and unbilled usage 14 81 1,569 1,112 693 164 3 24 3,660 95 Interest 82 34 132 102 226 11 58 2 647 242 Notes - - - - - - 397 - 397 - Due from other governments - 1,169 - 58 49 - 34 17 1,327 51 Inventories - 325 - 408 - - - - 733 521 Prepaid item 19 19 19 18 22 97 Total current assets 13,067 8,607 16,576 9,922 15,748 1,725 4,421 315 70,381 33,401 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 1 20 9,991 5,163 14,743 - 3,911 110 33,939 - Advances to other funds - - - - 1,666 - - - 1,666 - Capital assets: Land 3,489 2,630 759 6,296 2,264 2,264 620 11,995 30,317 45 Buildings 41,647 15,399 36,858 24,019 5,467 - 5,350 5,377 134,117 1,487 Improvements other than buildings 328 - 7,261 2,742 421 - 9 396 11,157 50 Machinery and equipment 1,575 14,252 7,633 10,833 252 27 106 293 34,971 21,748 Infrastructure - 955 149,981 63,824 17,366 61,227 - 17,868 311,221 2,101 Accumulated depreciation (20,632) (15,633) (80,228) (39,112) (16,375) (14,933) (4,566) (9,707) (201,186) (13,561) Construction in progress 1,306 7,961 3,494 821 1,634 80 15,296 336 Total noncurrent assets 26,408 18,929 140,216 77,259 26,625 50,219 5,430 26,412 371,498 12,206 Total assets 39,475 27,536 156,792 87,181 42,373 51,944 9,851 26,727 441,879 45,607 Deferred Outflows of Resources Pension related deferred outflows 251 716 408 490 471 38 172 15 2,561 415 OPEB related deferred outflows 25 77 34 44 51 1 12 1 245 32 Total deferred outflows ofresources 276 793 442 534 522 39 184 16 2,806 447 Liabilities Current liabilities: Accounts payable 124 1,579 80 385 184 5 26 19 2,402 541 Contracts payable 31 - 426 205 705 4 - 36 1,407 - Accrued liabilities 46 151 68 85 86 8 31 4 479 2,662 Employee vested benefits 37 127 61 80 83 1 33 2 424 64 Due to other governments - 13 1 27 1 - 61 - 103 - Interest payable 40 - 330 150 - - - - 520 - Capital lease obligation 545 - - - - - - - 545 - Bonded debt payable (net of unamor ized premium and discounts) 3,729 1,540 5,269 Total current liabilities 823 1,870 4,695 2,472 1,059 18 151 61 11,149 3,267 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 1 6 - 1,017 7 - 779 9 1,819 - Advances from other funds 1,666 - - - - - - - 1,666 - Employee vested benefits 27 87 42 58 61 1 24 2 302 50 Capital lease obligation 11,413 - - - - - - - 11,413 - Bonded debt payable (net of unamor ized premium and discounts) - - 13,358 10,468 - - - - 23,826 - Net pension liability 894 2,512 1,404 1,680 1,678 143 602 53 8,966 1,418 Other post employment benefits liability 214 665 293 383 439 11 101 11 2,117 281 Landfill closure/postclosure liability 9,259 9,259 Total noncurrent liabilities 14,215 3,270 15,097 13,606 11,444 155 1,506 75 59,368 1,749 Total liabilities 15,038 5,140 19,792 16,078 12,503 173 1,657 136 70,517 5,016 Deferred Inflows of Resources Pension related deferred inflows 47 133 74 89 89 8 32 3 475 75 OPEB related deferred inflows 10 29 13 17 20 1 5 - 95 14 Deferred amount on refunding 123 90 213 Total deferred inflow ofresources 57 162 210 196 109 9 37 3 783 89 Net Position Net investment in capital assets 14,449 18,909 113,015 59,480 10,216 50,219 1,519 26,302 294,109 12,206 Restricted by bond ordinance - - 9,661 3,450 - - - - 13,111 - Reshicted by state statute - - - 5,876 - - - 5,876 - Restricted for future improvements - - - - - - - 100 100 - Reshictedbygrantagreement - - - - - - 3,132 - 3,132 - Unrestcicted 10,207 4,118 14,556 8,511 14,191 1,582 3,690 202 57,057 28,743 Total net position $ 24,656 $ 23,027 $ 137,232 S 71,441 $ 30283 S 51.801 $ 8,341 S26,604 S 373,385 $ 40,949 Adjustment to reflect the consolidation ofintemal service fund activities related to enterprise funds. 16,069 Net position of business -type activities S 389,454 The notes to the financial statements are an integral part of this statement 38 CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended June 30, 2018 (amounts expressed in thousands) Governmental Business -type Activities - Enterprise Funds Activities - Internal Wastewater Housing Nonmajor Service Parking Transit Treatment Water Sanitation Stormwater Authority Airport Total Funds Operating Revenues: Charges for services $ 5,648 S 2,216 S 12,626 S 9,473 510,014 S 1,560 S 323 S 348 542,208 S 19,284 Miscellaneous 35 69 87 73 79 7 93 13 456 - Total operating revenues 5,683 2,285 12,713 9,546 10,093 1,567 416 361 42,664 19,284 Operating Expenses: Personal services 1,674 4,127 2,948 3,463 2,960 314 905 85 16,476 2,317 Commodities 502 810 1,250 1,427 403 73 85 70 4,620 2,258 Services and charges 1,614 2,235 2,424 2,059 5,301 217 8,434 393 22,677 10,832 3,790 7,172 6,622 6,949 8,664 604 9,424 548 43,773 15,407 Depreciation 1,268 906 4,436 2,372 1,526 1,240 120 1,003 12,871 1,884 Total operating expenses 5,058 8,078 11,058 9,321 10,190 1,844 9,544 1,551 56,644 17,291 Operating income (loss) 625 (5,793) 1,655 225 (97) (277) (9,128) (1,190) (13,980) 1,993 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 2,423 (23) (53) 3 - - 2 (144) 2,208 (30) Operating grants - 2,088 - - 3 2 9,065 72 11,230 - Interest income 129 80 468 292 444 24 54 5 1,496 430 Interest expense (568) - (375) (259) - - - - (1,202) - Total nonoperatingrevenues (expenses) 1,984 2,145 40 36 447 26 9,121 (67) 13,732 400 Income (loss) before capital contributions and transfers 2,609 (3,648) 1,695 261 350 (251) (7) (1,257) (248) 2,393 Capital contributions - 3,827 1,913 483 22 892 - 49 7,186 - Transfers in 3,376 531 1,041 1 1,623 30 110 6,712 1,202 Transfers out - (4,727) (715) (1,528) (1,000) (47) - (8,017) (2,123) Change in net position 2,609 3,555 (588) 1,070 (1,155) 1,264 (24) (1,098) 5,633 1,472 Net Position, Beginning, as restated 22,047 19,472 137,820 70,371 31,438 50,537 8,365 27,702 39,477 Net Position, Ending 524,656 S 23,027 5137,232 571,441 530,283 5 51,801 S 8,341 S 26,604 S 40,949 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 575 Change in net position ofbusiness-type activities S 6,208 The notes to the financial statements are an integral part of this statement 39 CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2018 (amounts expressed in thousands) 40 Governmental Business -type Activities - Enterprise Funds Activities - Internal Wastewater Housing Nonmajor Service Parking Transit Treatment Water Sanitation Stormwater Authority Airport Total Funds Cash Flows From Operating Activities Receipts from customers and users $ 5,679 $ 2,219 $ 12,669 $ 9,472 $ 10,118 $ 1,557 $ 717 $ 360 $ 42,791 $ 19,362 Payments to suppliers (2,187) (1,678) (3,839) (3,294) (5,082) (358) (8,500) (471) (25,409) (13,078) Payments to employees 1,769 (4,005) (3,084) 3,482 (2,939) (276) (928) (78) 16,561 2,400 Net cash flows from (used for) operating activities 1,723 (3,464) 5,746 2,696 2,097 923 (8,711) (189) 821 3,884 Cash Flows From Noncapital Financing Activities Grants received - 3,706 - - 1 84 8,993 140 12,924 - Transfers from other funds - 3,376 231 - 1 - 30 110 3,748 - Transfers to other funds - - (2,000) (715) (486) (1,000) (47) - (4,248) (1,453) Repayment/(payment) ofnotes receivable - - - - - - 143 - 143 - Repayment ofadvances from other funds - - - - 235 - - - 235 - Repayment of advances to other funds 235 - - - - - - (235)Net cash flows from (used for) noncapital financing activities 235 7,082 (1,769) 715 (249) (916) 9,119 250 12,567 1,453 Cash Flows From Capital and Related Financing Activities Capital grants received - 3,108 1,291 - 20 - - 78 4,497 - Acquisition and construction of property and equipment (70) (4,830) (4,522) (1,198) (1,185) (22) (22) (152) (12,001) (1,870) Proceeds from sale of property 2,679 - 10 3 - - 2 20 2,714 237 Principal paid on capital lease obligation (2,524) - - - - - - - (2,524) - Interest paid on capital lease obligation (576) - - - - - - - (576) - Principal paid on bonded debt - - (3,556) (1,443) - - - - (4,999) Interest paid on bonded debt - - (755) 395 (1,150) - Net cash flows used for capital and related financing activities 491 (1,722) (7,532) 3,033 (1,165) (22) (20) (54) 14,039 1,633 Cash Flows From Investing Activities Interest on investments 78 61 436 232 310 18 61 4 1,200 277 Net increase (decrease) in cash and cash equivalents 1,075 1,957 (3,119) (820) 993 3 449 11 549 1,075 Cash and Cash Equivalents, Beginning 11,897 5,042 27,966 14,206 28,512 1.547 7,391 349 96,910 31,417 Cash and Cash Equivalents, Ending S 12.972 S 6,999 S 24.847 S13386 S 29,505 $ 1.550 S 7.840 $ 360 S 97.459 S 32.492 Reconciliation of operating income (loss) to net cash flows from (used for) operating activities: Operating income( loss) $ 625 $ (5,793) $ 1,655 $ 225 $ (97) $ (277) $ (9,128) $ (1,190) $(13,980) $ 1,993 Adjustments to reconcile operating income (loss) to net cash flows from (used for) operating activities: Depreciation expense 1,268 906 4,436 2,372 1,526 1,240 120 1,003 12,871 1,884 Changes in: Receivables: Accounts and unbilled usage (4) (66) (44) (69) 5 (10) (3) - (191) 62 Due from other governments - - - (57) 18 - 144 - 105 16 Inventories - (31) - 61 - - - - 30 (55) Prepaid item - (19) (19) (19) (18) - - (19) (94) 12 Accounts payable (71) 1,420 (145) 148 (27) (68) (8) 11 1,260 55 Accrued liabilities 3 15 (1) 4 14 (1) 3 2 39 (84) Employee vested benefits (2) 17 (3) 17 - - 2 1 32 1 Due to other governments - (3) (1) 2 (1) - 27 - 24 - Deposits - - - 52 2 - 160 (1) 213 - Net pension liability (101) 84 (65) 12 30 33 (6) 4 (9) 21 Deferred outflows ofresources (25) (107) (87) (104) (100) 2 (38) (2) (461) (66) Deferred inflows ofresources (4) 9 (26) (7) 9 2 1 - (16) 1 Other post employment benefits liability 34 104 46 59 68 2 15 2 330 44 Landfill closure/postclosure liability 668 668 Total adjustments 1,098 2,329 4,091 2,471 2,194 1,200 417 1,001 14,801 1,891 Net cash flows from (used for) operating activities $ 1,723 $ (3,464) $ 5,746 $ 2,696 $ 2,097 $ 923 $ (8,711) $ (189) $ 821 $ 3,884 Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others $ - $ - $ 922 $ 1,524 $ - $ 2,515 $ - $ - $ 4,961 $ 1,202 Contributions ofcapital assets to government and others $ - $ - $ 2,727 $ - $ 1,042 $ - $ - $ - $ 3,769 $ 670 Capital grants not yet received $ - $ 1,114 $ - $ - $ 2 $ - $ - $ 5 $ 1,121 $ - Operating grants not yet received $ - $ 5 $ - $ - $ 2 $ - $ 34 $ 12 $ 53 $ - The notes to the financial statements are an integral part of this statement. 40 CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2018 (amounts expressed in thousands) Agency Funds Assets Equity in pooled cash and investments $ 150 Interest receivable 1 Total assets $ 151 Liabilities Accounts payable $ 12 Due to agency 139 Total liabilities $ 151 The notes to the financial statements are an integral part of this statement. 41 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2018 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, public safety, streets, parks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment, wastewater treatment, storm water collection, sanitation collection and disposal (including landfill operations) and a housing authority. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. The Reporting Entity For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, commissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. There were no component units required to be included. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non -fiduciary activities of the primary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule, the effect of inter -fund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City's water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 42 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Description of Funds These financial statements include all funds owned or administered by the City or for which the City acts as custodian. The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted for by providing a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its "measurement focus." The government -wide financial statements and proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Agency funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. All governmental funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and current liabilities on the balance sheet. The modified accrual basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Other Shared Revenue and Grants Fund is used to account for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The Employee Benefits Fund is used to account for the employee benefits related to those employees who are paid through governmental fund types, which are funded by a separate property tax levy. 43 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 The Other Construction Fund accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. The Bridge, Street, and Traffic Control Construction Fund accounts for the construction or replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting systems. The Debt Service Fund accounts for the accumulation of resources for the payment of general long- term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Parking Fund is used to account for the operation and maintenance of the "on" and "off' street public parking facilities. The Transit Fund is used to account for the operation and maintenance of the public transportation system. The Wastewater Treatment Fund is used to account for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. The Water Fund is used to account for the operation and maintenance of the water system. The Sanitation Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Stormwater Fund is used to account for the operation and maintenance of the stormwater utility system. The Housing Authority Fund is used to account for the operations and activities of the City's low and moderate income housing assistance and public housing programs. The City has one nonmajor enterprise fund, the Airport Fund is used to account for the operation and maintenance of the airport facility. Additionally, the City reports internal service funds to account for goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund, and the Information Technology Fund. The City also reports fiduciary funds which are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one fiduciary fund which is maintained as an agency fund, with no attempt to create an ongoing fund balance. The fund in this category is Project Green, which accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. 44 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the City's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of other post employment benefit obligation, net pension liability, landfill closure and post -closure care costs, total capacity of the landfill at closure, and calculation of the costs of claims incurred, but not reported. Cash and Investments The City maintains one primary demand deposit account through which the majority of its cash resources are processed. Substantially all investment activity is carried on by the City in an investment pool, except for those funds required to maintain their investments separately. The earnings on the pooled investments are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the Investment Company Act of 1940. For the purpose of the Statement of Cash Flows, restricted and non -restricted investments with a maturity of three months or less when purchased are considered cash equivalents. Receivables and Revenue Recognition Property tax receivable is recognized in governmental funds on the levy or lien date, which is the date that the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property tax receivable has been recorded, it will not be recognized as revenue until the year for which it is levied. Federal and state grants are recorded as receivables and the revenue is recognized during the period in which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to accrual criteria are met. 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Income from investments in all fund types and from charges for services in proprietary fund types is recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services (in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the Other Shared Revenue and Grants Fund, Transit Fund, Water Fund, and the Equipment Maintenance Fund. Inventories of materials and supplies are determined by actual count and priced on the FIFO method. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, water mains, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. The City follows the policy of not requiring capitalization of an asset with an initial, individual cost of less than $50,000 for infrastructure, $25,000 for buildings and improvements, and $5,000 for equipment assets. Such assets are recorded at original purchase cost or at acquisition value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated useful lives: Infrastructure 3 — 100 years Buildings and structures 20 — 50 years Improvements other than buildings 10 — 50 years Vehicles 2 — 20 years Other equipment 3 — 30 years Deferred Outflows of Resources Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of resources consist of unrecognized items not yet charged to pension and OPEB expense and contributions from the employer after the measurement date but before the end of the employer's reporting period. Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance. In the proprietary funds and the government -wide statements, they are amortized over the life of the bonds. 46 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the accumulated sick leave at the time of termination on the basis of the employee's then effective hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System (Systems') and additions to/deductions from the Systems' fiduciary net position have been determined on the same basis as they are reported by the Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 8). Deferred Inflows of Resources Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues are measureable, they are not available. Available means collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of resources in the governmental fund financial statements represent the amount of assets that have been recognized, but the related revenue has not been recognized since the assets are not collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of resources consist of property tax receivable, grants receivable and other receivables. Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax receivable that will not be recognized as revenue until the year for which they are levied, the difference in the carrying value of refunded debt and it's acquisition price and the unamortized portion of pension and OPEB related items. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 15 of each year to become effective July 1, and constitutes the City's appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each function: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects Business-type/enterprise b. The amount to be raised by property taxation c. Income from sources other than property taxation d. Transfers in and transfers out The legal level of control (the level at which expenditures may not legally exceed appropriations) is the function level for all funds combined, rather than at the individual fund level. Management can transfer appropriations within a function, within a fund type, and between fund types, without the approval of the governing body so long as the total budget by function area will not be exceeded. It is necessary, therefore, to aggregate the expenditures of the budgeted activities within the governmental fund types with the expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The City's budget for revenue focuses on aggregated totals by revenue source. The City formally adopts budgets for several funds that are not required by state law to be included in the annual function budget. Annual operating budgets are adopted for the internal service funds for management control purposes. Such budgets, however, are not legally required to be adopted under state statutes. A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on hand at the end of the preceding fiscal year. b. To permit the appropriation and expenditure of amounts anticipated being available from sources other than property taxation. c. To permit transfers between funds. d. To permit transfers between functions. A budget amendment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed, and the effects of those amendments are shown in the accompanying budgetary comparison schedule. The original budget was increased by $20,830,854 in revenues and other financing sources and by $86,333,581 in expenditures and other financing uses. Appropriations, as adopted or amended, lapse at the end of the fiscal year. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 As allowed by GASB Statement No. 41, Budgetary Comparison Schedules — Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of nine functional areas as required by state statute for its legally adopted budget. Restricted Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund's purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted assets, are classified as such. Classification of Fund Balances Fund balances for the governmental funds are reported in classifications based on the nature of any limitations requiring the use of resources for specific purposes (see Note 10). 2. Cash and Pooled Investments The City's deposits in banks at June 30, 2018 were entirely covered by federal depository insurance, national credit union administration, or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper or other short-term corporate debt; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open—end management investment companies registered with the Securities & Exchange Commission under the federal Investment Company Act of 1940; and warrants or improvement certificates of a drainage district. At June 30, 2018, the City had the following investments: Fair Investment Value Maturities Federal Home Loan Bank Notes $ 10,385,215 November 2018 to October 2022 Federal Home Loan Mortgage Corporation Notes 5,974,160 May 2019 to March 2023 United States Treasury Notes 8,491,315 July 2018 to April 2019 Federal National Mortgage Association 1,058,048 June 2019 Natixis NY Branch Commercial Paper 2,967,427 September 2018 to November 2018 John Deere Capital Corporation Corporate Notes 997,690 October 2018 Toyota Motor Credit Corporation Corporate Notes 1,989,100 February 2019 $ 31,862,955 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 The City uses the fair value hierarchy established by generally accepted accounting principles based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs. The recurring fair value measurement for the Federal Home Loan Bank securities of $10,385,215, the Federal Home Loan Mortgage Corporation securities of $5,974,160, the Federal National Mortgage Association securities of $1,058,048 and the United States Treasury securities of $8,491,315 were determined using the last reported sales price at current exchange rates (Level 1 inputs). The fair value measurement for the Natixis NY Branch commercial paper of $2,967,427 was determined using the last reported sales price at current exchange rates (Level 1 inputs). The fair value measurements for the John Deere Capital Corporation corporate notes of $997,690 and the Toyota Motor Credit Corporation corporate notes of $1,989,100 were determined using the last reported sales price at current exchange rates (Level 1 inputs). The City had no other investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. In addition, the City had investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued at an amortized cost of $14,047,707, which approximates fair value. The Diversified Portfolio consists of cash and short-term investments valued at amortized cost, which approximates fair value, pursuant to Governmental Accounting Standards Board Statement No. 79. The Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Interest rate risk - The City's investment policy limits the investment of general and operating funds to one year, unless a temporary extension of maturities is approved by the City Council. In such cases, the average maturity of each fund's portfolio shall not exceed 397 days. Funds not identified as operating funds may be invested in instruments whose maturities do not exceed five years at the time of purchase. Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody's Investors service as it is a state security that is backed by the full faith and credit of the issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. 3. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2018, consisted of the following: Advances to: Parking Other Shared Revenue and Grants Total Advances from Debt Service Sanitation Total $ - $ 1,665,852 $ 1,665,852 110,893 - 110,893 $ 110,893 $ 1,665,852 $ 1,776,745 Interfund balances at June 30, 2018, include advances due to/from other funds, which represent amounts for construction loans and a revenue bond redemption loan. $1,423,385 of the $1,665,852 advance to the Parking Fund is not expected to be repaid within the next year. $96,694 of the $110,893 advance to the Other Shared Revenue and Grants Fund is not expected to be repaid within the next year. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Interfund transfers for the year ended June 30, 2018, consisted of the following: Transfer from Capital Projects Bridge, Street Other Capital Projects and Traffic Shared Revenue Employee Other Control Nonmajor General and Grants Benefits Construction Construction Governmental Transfer to General $ - $ 93,553 $ 9,947,001 $ 31,923 $ - $ 18,356 Other Shared Revenue and Grants 650,093 - 427,642 - 13,941 - Debt Service 20,052 - - 256 - 1,064,028 Capital Projects Other Construction 994,403 1,018,570 - 20,986 17,082 Capital Projects Bridge, Street and Traffic Control Construction 8,338,836 3,212,990 - - Nonmajor Governmental 133,935 202,104 Transit 3,376,455 - - Wastewater Treatment 452 231,020 300,000 - Water 392 - 87,810 952,848 Sanitation 1,324 - - Stormwater 249 67,252 411,444 - Housing Authority - - - 29,287 Nonmajor Enterprise 109,687 - - - Internal Service 8,934 216,377 439,364 Total Transfer to $ 13,634,812 $ 4,974,614 $ 10,374,643 $ 926,605 $ 1,399,219 $ 1,128,753 Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Transfer from Wastewater Housing Internal Total Treatment Water Sanitation Stormwater Authority Service Transfer from $ $ $ $ $ 46,779 $ $ 10,137,612 - 1,091,676 1,084,336 1,622,867 500,000 486,141 300,000 1,453,180 6,413,229 2,085,761 215,467 860,954 700,000 188,961 15,602,969 - - - - - 336,039 3,376,455 531,472 1,041,050 1,324 1,018,827 124,941 - 1,622,713 - - 264 29,551 - - 109,687 56,469 480,516 1,201,660 $ 4,727,455 $ 715,467 $ 1,528,505 $ 1,000,000 $ 46,779 $ 2,122,921 $ 42,579,773 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 4. Capital Assets Capital asset activity for the year ended June 30, 2018, was as follows: Acquisitions Disposals Beginning and and Balance July 1, 2017 Transfers Transfers June 30, 2018 Governmental activities: Capital assets, not being depreciated: Land $ 29,778,881 $ 1,115,078 $ - $ 30,893,959 Construction in progress 22,766,982 19,850,327 334,743 42,282,566 Total capital assets, not being depreciated 52,545,863 20,965,405 334,743 73,176,525 Capital assets, being depreciated: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total accumulated depreciation 64,183,861 1,235,069 163,326 65,255,604 7,501,518 103,346 48,019 7,556,845 44,456,239 4,745,142 5,344,321 43,857,060 156,922,114 4,915,183 1,038,129 160,799,168 273,063,732 10,998,740 6,593,795 277,468,677 24,719,781 1,685,194 146,753 26,258,222 3,547,490 284,040 40,757 3,790,773 27,770,324 3,461,091 4,653,360 26,578,055 43,427,263 3,331,298 751,064 46,007,497 99,464,858 8,761,623 5,591,934 102,634,547 Total capital assets, being depreciated, net 173,598,874 2,237,117 1,001,861 174,834,130 Governmental activities capital assets, net $ 226,144,737 $ 23,202,522 $ 1,336,604 $ 248,010,655 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Less accumulated depreciation for Buildings 60,819,791 Acquisitions Disposals 64,261,561 Beginning and and Balance July 1, 2017 Transfers Transfers June 30, 2018 Business -type activities: 24,576,412 Infrastructure 97,920,877 Capital assets, not being depreciated: 112,346 105,411,337 Total accumulated depreciation Land $ 30,737,360 $ - $ 420,175 $ 30,317,185 Construction in progress 9,714,893 6,094,744 512,350 15,297,287 Total capital assets, not being depreciated 40,452,253 6,094,744 932,525 45,614,472 Capital assets, being depreciated: $ 335,065,421 $ 1,858,095 $ 1,028,441 $ Buildings 134,116,842 - - 134,116,842 Improvements other than buildings 10,888,774 273,123 5,395 11,156,502 Machinery and equipment 30,811,069 4,390,048 229,165 34,971,952 Infrastructure 307,426,024 3,969,414 174,260 311,221,178 Total capital assets being depreciated 483,242,709 8,632,585 408,820 491,466,474 Less accumulated depreciation for Buildings 60,819,791 3,441,770 - 64,261,561 Improvements other than buildings 6,548,221 392,926 4,586 6,936,561 Machinery and equipment 23,340,652 1,431,732 195,972 24,576,412 Infrastructure 97,920,877 7,602,806 112,346 105,411,337 Total accumulated depreciation 188,629,541 12,869,234 312,904 201,185,871 Total capital assets, being depreciated, net 294,613,168 (4,236,649) 95,916 290,280,603 Business -type activities capital assets, net $ 335,065,421 $ 1,858,095 $ 1,028,441 $ 335,895,075 Depreciation expense was charged to functions as follows: Governmental activities: Public safety $ 1,579,960 Public works 3,829,983 Culture and recreation 2,890,681 Community and economic development 59,345 General government 401,654 Total depreciation expense - governmental activities $ 8,761,623 Business -type activities: Parking $ 1,267,743 Transit 905,993 Wastewater treatment 4,435,712 Water 2,371,624 Sanitation 1,525,829 Stormwater 1,239,560 Housing authority 120,199 Nonmajor enterprise 1,002,574 Total depreciation expense - business -type activities $ 12,869,234 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 5. Capital Lease Obligation Last year, the government entered into a lease agreement as lessee for financing the acquisition of a parking ramp valued at $15,497,867. The parking ramp has a 30 -year estimated useful life. This year, $516,596 was included in depreciation expense. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as of the inception date. The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2018, were as follows: Fiscal Year Ending June 30 2019 2020 2021 2022 2023 2024-2036 Total minimum lease payments Less: amount representing interest Present value of minimum lease payments Changes in Capital Lease Obligation Business -type Activities $ 1,021,221 1,021,221 1,021,221 1,021,221 1,021,221 11,313,343 16,419,448 (4,461,143) $ 11,958,305 Changes in the capital lease obligation for the year ended June 30, 2018, was as follows: Due Within July 1, 2017 Issues Retirements June 30, 2018 One Year Business -type activities: $ 14,482,714 $ - $ 2,524,409 $ 11,958,305 $ 545,281 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2018, was as follows: Due Within July 1, 2017 Issues Retirements June 30, 2018 One Year Governmental activities: General obligation bonds $ 51,645,000 $ 11,995,000 $ 11,760,000 $ 51,880,000 $ 9,335,000 Plus: Unamortized Premium 926,254 235,940 158,670 1,003,524 144,226 Total general obligation bonds 52,571,254 12,230,940 11,918,670 52,883,524 9,479,226 Revenue bonds 15,200,000 - 135,000 15,065,000 135,000 Less: Unamortized Discounts 31,860 - 2,124 29,736 2,124 Total revenue bonds 15,168,140 - 132,876 15,035,264 132,876 $ 67,739,394 $ 12,230,940 $ 12,051,546 $ 67,918,788 $ 9,612,102 Business -type activities: Revenue bonds 32,820,000 - 5,035,000 27,785,000 4,975,000 Plus: Unamortized Premium 1,600,914 - 290,852 1,310,062 294,351 Total revenue bonds $ 34,420,914 $ - $ 5,325,852 $ 29,095,062 $ 5269,351 General Obligation Bonds Various issues of general obligation bonds totaling $51,880,000 are outstanding as of June 30, 2018. The bonds have interest rates ranging from 1.25% to 3.65% and mature in varying annual amounts ranging from $740,000 to $2,100,000 per issue, with the final maturities due in the year ending June 30, 2028. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending June 30 2019 2020 2021 2022 2023 2024-2028 Governmental Activities Principal $ 9,335,000 8,400,000 7,585,000 6,395,000 5,520,000 14,645,000 Interest $ 1,257,050 1,036,338 819,135 631,263 492,013 882,450 Total $ 51,880,000 $ 5,118,249 Revenue Bonds As of June 30, 2018, the following unmatured revenue bond issues are outstanding: Original issue amount Interest rates Annual maturities Amount outstanding Wastewater Taxable Urban Treatment Water Renewal $ 37,650,000 2.0% to 5.0% $ 275,000 to $ 2,085,000 $ 16,010,000 $ 24,260,000 1.5% to 5.0% $ 405,000 to $ 1,225,000 $ 11,775,000 58 $ 15,200,000 1.0% to 3.9% $ 135,000 to $ 965,000 $ 15,065,000 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending June 30 2019 2020 2021 2022 2023 2024-2028 2029-2033 2034-2038 Total Governmental Activities Principal $ 135,000 140,000 140,000 1,110,000 1,110,000 5,205,000 4,630,000 2,595,000 Interest $ 454,335 451,635 448,695 445,475 413,045 1,573,275 816,890 157,200 Business -type Activities Principal Interest 4,975,000 5,385,000 5,610,000 4,350,000 3,840,000 3,625,000 $ 872,703 685,365 477,665 298,690 149,270 88,150 $ 15,065,000 $ 4,760,550 $ 27,785,000 $ 2,571,843 The revenue bond ordinances required that wastewater treatment, water revenues, and urban renewal tax revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve (b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Water Revenue and Taxable Urban Renewal Revenue bonds — maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds —125% of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds and $5,000 per month until the reserve balance equals or exceeds $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. In fiscal year ended June 30, 2018, the Wastewater Treatment Fund had net revenue of $6,559,000 and the amount of principal and interest due was $4,336,000. In fiscal year ended June 30, 2018, the Water Fund had net revenues of $2,889,000 and the amount of principal and interest due was $1,849,000. 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2018, are comprised of the following issues: 60 Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2018 General Obligation Bonds: Refunded Multi -Purpose and Library Construction (1) June 2011 10,930,000 2.0-3.625 6/21 3,850,000 Multi -Purpose June 2012 9,070,000 2.0-2.25 6/22 3,865,000 Multi -Purpose July 2013 7,230,000 1.0-2.0 6/23 4,185,000 Refunded Multi -Purpose (2) June 2014 11,980,000 2.0-3.0 6/24 5,785,000 Multi -Purpose June 2015 7,785,000 2.0-2.25 6/25 5,655,000 Multi -Purpose June 2016 8,795,000 2.0-3.0 6/26 7,680,000 Multi -Purpose June 2017 9,765,000 2.0-2.5 6/27 8,865,000 Multi -Purpose June 2018 8,895,000 1.8-2.65 6/28 8,895,000 Taxable Multi -Purpose June 2018 3,100,000 2.35-2.6 6/20 3,100,000 Total General Obligation Bonds $ 51,880,000 Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2018 Revenue Bonds: Refunded Wastewater Treatment Bonds (3) Apr. 2010 15,080,000 3.0-4.0 7/20 3,940,000 Refunded Wastewater Treatment Bonds (4) June 2016 9,360,000 3.0-4.0 7/21 7,520,000 Refunded Wastewater Treatment Bonds (5) June 2017 4,550,000 2.0-5.0 7/22 4,550,000 Refunded Water Bonds (6) June 2012 4,950,000 1.5 - 2.1 7/22 2,595,000 Refunded Water Bonds (7) June 2016 3,650,000 1.5 - 5.0 7/24 3,270,000 Refunded Water Bonds (8) June 2017 5,910,000 2.0-2.25 7/25 5,910,000 Taxable Urban Renewal Nov. 2012 2,655,000 1.0 - 3.9 6/32 2,260,000 Taxable Urban Renewal Sept. 2016 12,805,000 3.0 6/36 12,805,000 Total Revenue Bonds $ 42,850,000 $ 94,730,000 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 (1) This bond issue refunded the May 2002 General Obligation Bonds. (2) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General Obligation Bonds. (3) This bond issue refunded the December 2001 and April 2002 Wastewater Revenue Bonds. (4) This bond issue refunded the October 2008 Wastewater Revenue Bond. (5) This bond issue refunded the May 2009 Wastewater Revenue Bonds. (6) This bond issue refunded the October 2002 Water Revenue Bonds. (7) This bond issue refunded the October 2008 Water Revenue Bonds. (8) This bond issued refunded the May 2009 Water Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Midwestern Disaster Area Revenue Bonds to provide financial assistance to private sector entities for the acquisition, construction, and renovation of industrial and commercial facilities deemed to be in the public interest. The bonds are collateralized by the property financed and are payable solely from payments received on the underlying mortgage loans. All payments on the bonds are made by the private sector entities directly to a bond trustee, who is a third party financial institution, and in turn, disburses the payment to the respective bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2018, there were three series of Industrial Development Revenue Bonds outstanding, with an aggregate principal amount payable of $32,063,059. Debt Legal Compliance Legal Debt Margin: As of June 30, 2018, the general obligation debt issued by the computed as follows (amounts expressed in thousands): Assessed valuation: Real property Utilities Total valuation Debt limit, 5% of total assessed valuation Debt applicable to debt limit: General obligation bonds Urban renewal revenue bonds Letters of credit Other legal indebtedness (TIF rebates) Total net debt applicable to limit Legal debt margin 61 City did not exceed its legal debt limit $ 5,399,877 94,582 5,494,459 274,723 51,880 15,065 475 25,012 92,432 $ 182,291 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 7. Pension and Retirement Systems Municipal Fire and Police Retirement System of Iowa (MFPRSI) Plan Description MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by MFPRSI. MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake Drive, Suite #201, West Des Moines, Iowa 50266 or at www.mfprsi.org. MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension Benefits Members with 4 or more years of service are entitled to pension benefits beginning at age 55. Full service retirement benefits are granted to members with 22 years of service, while partial benefits are available to those members with 4 to 22 years of service based on the ratio of years completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a refund of their contribution only, with interest, for the period of employment. Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3 years becomes the member's average final compensation. The base benefit is 66 percent of the member's average final compensation. Additional benefits are available to members who perform more than 22 years of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor benefits are available to the beneficiary of a retired member according to the provisions of the benefit option chosen plus an additional benefit for each child. Survivor benefits are subject to a minimum benefit for those members who chose the basic benefit with a 50 percent surviving spouse benefit. Active members, at least 55 years of age, with 22 or more years of service have the option to participate in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3, 4, or 5 year DROP period. By electing to participate in DROP the member is signing a contract indicating the member will retire at the end of the selected DROP period. During the DROP period the member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of the member's retirement benefit at the member's earliest date eligible and 100% if the member delays enrollment for 24 months. At the member's actual date of retirement, the member's DROP account will be distributed to the member in the form of a lump sum or rollover to an eligible plan. Disability and Death Benefits Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined as permanent disability incurred in the line of duty, with benefits equivalent to the greater of 60 percent of the member's average final compensation or the member's service retirement benefit calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the greater of 50 percent of the member's average final compensation, for those with 5 or more years of service, or the member's service retirement benefit calculation amount, and 25 percent of average final compensation for those with less than 5 years of service. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Death benefits are similar to disability benefits. Benefits for accidental death are 50 percent of the average final compensation of the member plus an additional amount for each child, or the provisions for ordinary death. Ordinary death benefits consist of a pension equal to 40 percent of the average final compensation of the member plus an additional amount for each child, or a lump -sum distribution to the designated beneficiary equal to 50 percent of the previous year's earnable compensation of the member or equal to the amount of the member's total contributions plus interest. Benefits are increased annually in accordance with Chapter 411.6 of the Code of Iowa which states a standard formula for the increases. The surviving spouse or dependents of an active member who dies due to a traumatic personal injury incurred in the line of duty receives a $100,000 lump -sum payment. Contributions Member contribution rates are set by state statute. In accordance with Chapter 411 of the Code of Iowa, the contribution rate was 9.40% of earnable compensation for the year ended June 30, 2018. Employer contribution rates are based upon an actuarially determined normal contribution rate and set by state statute. The required actuarially determined contributions are calculated on the basis of the entry age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, with such total divided by 1 percent of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions and state appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17.00% of earnable compensation. The contribution rate was 25.68% for the year ended June 30, 2018. The City's contributions to MFPRSI for the year ended June 30, 2018 was $2,758,801. If approved by the state legislature, state appropriation may further reduce the employer's contribution rate, but not below the minimum statutory contribution rate of 17.00% of earnable compensation. The State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the provisions of the Governmental Accounting Standards Board Statement No. 67 — Financial Reporting for Pension Plans, (GASB 67). There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2018. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the City reported a liability of $21,398,334 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all MFPRSI participating employers. At June 30, 2017, the City's proportion was 3.648635% which was a decrease of .048493% from its proportions measured as of June 30, 2016. 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 For the year ended June 30, 2018, the City recognized pension expense of $3,155,702. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions City contributions subsequent to the measurement date Total Deferred Outflows of Deferred Inflows of Resources Resources $ 821,164 $ 13,020 1,818,397 243,042 876,772 - 207,083 385,959 2,758,801 - $ 6,482,217 $ 642,021 $2,758,801 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Total June 30, 2019 $ 495,116 June 30, 2020 1,915,916 June 30, 2021 931,810 June 30, 2022 (386,431) June 30, 2023 124,984 $ 3,081,395 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Actuarial Assumptions The total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 3.00 percent per annum Salary increases 4.50 to 15.11 percent, including inffition Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period from July 1, 2002 to June 30, 2012. Postretirement mortality rates were based on the RP -2000 Blue Collar Combined Healthy Mortality Table with males set -back two year, females set -forward one year and disabled individuals set -forward one year (male only rates), with five years projection of future mortality improvement with Scale BB. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long -Term Expected Asset Class Real Rate of Return Core Plus Fixed Income 3.3 % Emerging Markets 9.0 Emerging Markets Debt 6.3 Large Cap 5.5 Small Cap 5.8 Master Limited Partnerships (MLP) 9.0 International Large Cap 7.3 Tactical Asset Allocation 6.4 Private Equity 9.0 Private Non -Core Real Estate 8.0 Private Core Real Estate 6.0 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Discount Rate The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and the City contributions will be made at rates equal to the difference between actuarially determined rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of City's Proportionate Share of the Net Pension Liability to Chances in the Discount Rate The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.5%, as well as what the city's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% lower (6.5%) or 1% higher (8.5%) than the current rate. 1% Decrease Discount Rate 1% Increase (6.5%) (7.5%) (8.5%) City's proportionate share of the net pension liability: $ 35,166,874 $ 21,398,334 $ 9,946,426 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued MFPRSI financial report which is available on MFPRSI's website at www.mfprsi.org. Payables to the Pension Plan At June 30, 2018, there were no amounts due to MFPRSI. Iowa Public Employees Retirement System (IPERS) Plan Description IPERS membership is mandatory for employees of the City, except for those covered by another retirement system. Employees of the City are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by IPERS. IPERS issues a stand-alone financial report which is available to the public by mail at 7401 Register Drive P.O. Box 9117, Des Moines, Iowa 50306-9117 or at www.ipers.org. IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder. Chapter 97B and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Pension Benefits A regular member may retire at normal retirement age and receive monthly benefits without an early- retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more years of covered employment, or when the member's years of service plus the member's age at the last birthday equals or exceeds 88, whichever comes first. (These qualifications must be met on the member's first month of entitlement to benefits.) Members cannot begin receiving retirement benefits before age 55. The formula used to calculate a Regular member's monthly IPERS benefit includes: • A multiplier (based on years of service). • The member's highest five-year average salary. (For members with service before June 30, 2012, the highest three-year average salary as of that date will be used if it is greater than the highest five- year average salary.) If a member retires before normal retirement age, the member's monthly retirement benefit will be permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the reduction is 0.25 percent for each month that the member receives benefits before the member's earliest normal retirement age. For service earned starting July 1, 2012, the reduction is 0.50 percent for each month that the member receives benefits before age 65. Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began receiving benefits prior to July 1990 receive a guaranteed dividend with their regular November benefit payments. Disability and Death Benefits A vested member who is awarded federal Social Security disability or Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability benefits are not reduced for early retirement. If a member dies before retirement, the member's beneficiary will receive a lifetime annuity or a lump -sum payment equal to the present actuarial value of the member's accrued benefit or calculated with a set formula, whichever is greater. When a member dies after retirement, death benefits depend on the benefit option the member selected at retirement. Contributions Effective July 1, 2012, as a result of a 2010 law change, the contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS' Contribution Rate Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can increase or decrease each year to I percentage point. IPERS Contribution Rate Funding Policy requires that the actuarial contribution rate be determined using the "entry age normal" actuarial cost method and the actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial liability payment based on a 30 -year amortization period. The payment to amortize the unfunded actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization Method adopted by the Investment Board. 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 In fiscal year 2018, pursuant to the required rate, Regular members contributed 5.95% of pay and the City contributed 8.93% for a total rate of 14.88%. The City's total contributions to IPERS for the year ended June 30, 2018 were $2,696,017. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the City reported a liability of $26,432,957 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all IPERS participating employers. At June 30, 2017, the City's proportion was .3968158% which was an increase of .000546% from its proportions measured as of June 30, 2016. For the year ended June 30, 2018, the City recognized pension expense of $3,283,592. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 242,681 $ 229,022 Change of assumptions 4,592,828 Net difference between projected and actual earnings on pension plan investments - 276,081 Changes in proportion and differences between City contributions and proportionate share of contributions 23,898 891,786 City contributions subsequent to the measurement date 2,696,017 - Total 68 $ 7,555,424 $ 1,396,889 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 $2,696,017 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Total June 30, 2019 $ 287,057 June 30, 2020 1,728,462 June 30, 2021 1,032,975 June 30, 2022 99,731 June 30, 2023 314,293 $ 3,462,518 Actuarial Assumptions The total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 2.60% per annum (effective June 30, 2017) Salary increases 3.25 to 16.25%, average, including inflation. Rates vary by (effective June 30, 2017) membership group. Investment rate of return 7.00%, net of pension plan investment (effective June 30, 2017) expense, including inflation Wage growth 3.25% per annum based on 2.60% inflation and 0.65% (effective June 30, 2017) real wage inflation The actuarial assumptions used in the June 30, 2017 valuation were based on the results of actuarial experience study dated March 24, 2017. Mortality rates were based on the RP -2000 Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Core Plus Fixed Income Domestic Equity International Equity Private Equity Private Real Assets Public Real Assets Public Credit Private Credit Cash Target Allocation 27.0% 24.0 16.0 11.0 7.5 7.0 3.5 3.0 1.0 Total 100.0% Long -Term Expected Real Rate of Return 2.25% 6.25 6.71 11.15 4.18 3.27 3.46 4.25 (0.31) Discount Rate The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed employee contributions will be made at the contractually required rate and that the contributions from the City will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments to current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of City's Proportionate Share of the Net Pension Liability to Chances in the Discount Rate The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.0%, as well as what the city's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% lower (6.0%) or 1% higher (8.0%) than the current rate. 1% Decrease Discount Rate 1% Increase (6.0%) (7.0%) (8.0%) City's proportionate share of the net pension liability: $ 43,550,909 $ 26,432,957 $ 12,050,589 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued IPERS financial report which is available on IPERS' website at www.ipers.org. Payables to the Pension Plan At June 30, 2018, there were no amounts due to IPERS. 8. Other Long-term Liabilities Changes in Long -Term Liabilities - Notes Payable Note Payable activity for the year ended June 30, 2018, was as follows: Due Within July 1, 2017 Issues Retirements June 30, 2018 One Year Governmental activities: $ 211,000 $ - $ - $ 211,000 $ - A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an II unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1%, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. Changes in Long -Term Liabilities - Employee Vested Benefits Employee Vested Benefits activity for the year ended June 30, 2018, was as follows: July 1, 2017 Issues Retirements June 30, 2018 Due Within C)n v—, Governmental activities: $ 2,240,847 $ 1,251,119 $ 1,251,482 $ 2,240,484 $ 1,252,770 Business -type activities: $ 691,941 $ 436,353 $ 401,049 $ 727,245 $ 424,180 For the governmental activities, employee vested benefits are generally liquidated by the General Fund, Community Development Block Grant Fund and Other Shared Revenue and Grants Fund. 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Changes in Long -Term Liabilities - Landfill Closure Post -closure Care Costs Landfill Closure Post -closure care activity for the year ended June 30, 2018, was as follows: July 1, 2017 Due Within Issues Retirements June 30, 2018 One Year Business -type activities: $ 8,591,189 $ 668,029 $ - $ 9,259,218 $ - In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post -closure Care Costs (the Statement). Under these rules, in addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post -closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post -closure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and post -closure care costs as of June 30, 2018, is $9,259,218, which is based on 55.68% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $7,370,124 will be recognized as closure and post -closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2039. The estimated total current cost of the landfill closure and post -closure care costs at June 30, 2018, was determined by a licensed professional engineer and approximated at $16,629,342. It is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2018. These amounts are based on an estimated post -closure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and post -closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and post -closure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2018, the Sanitation Fund had $13,520,704 in related equity in pooled cash and investments, at fair value designated for satisfaction of closure and post -closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion of post -closure care costs, anticipated future inflation costs and additional costs that might arise from changes in post -closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. 72 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Changes in Long -Term Liabilities — Other Postemployment Benefits (OPEB) Plan Description: The City operates one self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. Group insurance benefits are established under Iowa Code Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. All full-time employees who retire or terminate/resign and their eligible dependents are offered the following post -employment benefit options: Health insurance and dental insurance — The option of continuing with the City's health insurance plan at the individual's expense. These benefits cease upon Medicare eligibility. Life insurance — The option of converting the employee's City -paid policy to an individual policy at the individual's expense with the City's life insurance carrier. Long-term disability — For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee's City -paid group policy to a personal policy at the individual's expense with the City's long-term disability insurance carrier. The above options, while at the individual's own expense, are included within the City's overall insurance package, which results in an implicit rate subsidy and an OPEB liability. Retired participants must be age 55 or older at retirement. At June 30, 2018, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefit payments 66 Active employees 598 Total 664 Total OPEB Liability: The City's total OPEB liability of $7,589,740 was measured as of June 30, 2018, and was determined by an actuarial valuation as of that date. 73 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Actuarial Assumptions: The total OPEB liability in the June 30, 2018 actuarial valuation was determined using the following actuarial assumptions and the entry age normal actuarial cost method, applied to all periods included in the measurement. Rate of inflation 2.60% per annum (effective June 30, 2018) Rates of salary increases 3.25% per annum based on 2.60% inflation and 0.65% (effective June 30, 2018) real wage inflation Discount rate 3.87%, compounded annually, including inflation (effective June 30, 2018) Healthcare cost trend rate 9.00% initial rate decreasing by .5% annually to an ultimate (effective June 30, 2018) rate of 5.00% Discount Rate: The discount rate used to measure the total OPEB liability was 3.87% which reflects the index rate for 20 -year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher as of the measurement date. Mortality rates are from the SOA RPH-2017 total dataset mortality table fully generational using Scale MP - 2017. Annual retirement probabilities are based on varying rates by age and turnover probabilities mirror those used by IPERS and MFPRSI. The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study with dates corresponding to those listed above. Total OPEB Liability Total OPEB liability beginning of year, as restated $ 6,412,170 Changes for the year: Service Cost 502,071 Interest 244,435 Difference between expected and actual experience (376,818) Changes in assumptions 982,333 Benefit payments (174,451) Net changes 1,177,570 Total OPEB liability end of year $ 7,589,740 Changes of assumptions reflect a change in the discount rate from 3.58% in fiscal year 2017 to 3.87% in fiscal year 2018. 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Sensitivity of the City's Total OPEB Liability to Chances in the Discount Rate: The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1% lower (2.87%) or 1% higher (4.87%) than the current discount rate. 1% Decrease Discount Rate 1% Increase (2.87%) (3.87%) (4.87%) Total OPEB liability $ 8,156,991 $ 7,589,740 $ 7,053,281 Sensitivity of the City's Total OPEB Liability to Chances in the Healthcare Cost Trend Rate: The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rate that is 1% lower (8.00%) or 1% higher (10.00%) than the current healthcare cost trend rate. Healthcare Cost 1% Decrease Trend Rate 1% Increase (8.00%) (9.00%) (10.000/0) Total OPEB liability $ 6,754,127 $ 7,589,740 $ 8,575,140 OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB: For the year ended June 30, 2018, the City recognized OPEB expense of $632,606. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following resources: Deferred Outflows of Resources Differences between expected and actual experience $ - Change of assumptions 884,100 Total $ 884,100 75 Deferred Inflows of Resources $ 339,136 $ 339,136 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 The amount reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: Year Ended Total June 30, 2019 $ 60,551 June 30, 2020 60,551 June 30, 2021 60,551 June 30, 2022 60,551 June 30, 2023 60,551 Thereafter 242,209 $ 544,964 9. Short Term Debt Changes in Short -Term Liabilities - Notes Payable Notes Payable activity for the year ended June 30, 2018, was as follows: Due Within July 1, 2017 Issues Retirements June 30, 2018 One Year Governmental activities: $ 663,000 $ 480,000 $ 668,000 $ 475,000 $ 475,000 During FY18, the City entered into additional multiple short term loans totaling $480,000 and repaid multiple short term loans totaling $668,000. The outstanding loans mature one year from the date of the loan and bear interest rates ranging from 4.75% to 5.00%. The loans were used to fund the acquisition and rehabilitation of single family homes as part of the UniverCity Neighborhood Partnership Program (UniverCity). UniverCity is a cooperative effort of the City of Iowa City and the University of Iowa dedicated to ensuring that the University of Iowa Campus and surrounding neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The short term loans have been repaid and will be repaid with the proceeds from the sale of the rehabilitated homes. 10. Fund Equity Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. • The Nonspendable classification contains amounts not in spendable form or legally or contractually required to be maintained intact. • Restricted amounts contain restraint on their use externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. 76 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 • Committed amounts can only be used for specific purposes imposed by formal action of the government's highest level of decision-making authority. The highest level of decision-making authority is the City Council and it takes a resolution to establish, modify or rescind a fund balance commitment. • Amounts intended to be used for specific purposes are Assigned. Assignments should not cause deficits in the Unassigned fund balance. The Finance Director has been delegated authority by the City Council through a resolution to assign amounts to be used for specific purposes. • Unassigned fund balance is the residual classification for the General Fund. The General Fund is the only fund that would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds would also be reported as unassigned. The City would use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned resources first to defer the use of these other classified funds. Components of Fund Balance Bridge, Other Street and Shared Traffic Other Revenue and Employee Other Control Debt Governmental General Grants Benefits Construction Construction Service Funds Total Nonspendable: Perpetual Care Principal $ 69,000 $ - $ - $ - $ - $ - $ - $ 69,000 Inventory - 81,070 - - - - - 81,070 Prepaid Items 724,393 84,162 808,555 Total Nonspendable 793,393 81,070 84,162 958,625 Restricted for: Public Safety 418,408 - - - - - - 418,408 Debt Sernce - - - - - 8,608,613 - 8,608,613 GO Bond Projects - - - 26,752,495 15,097,510 - - 41,850,005 State Funding - 3,893,383 - - - - - 3,893,383 Grant Agreement - 3,968 - - - - 3,831,389 3,835,357 Affordable Housing - 1,208,851 - - - - - 1,208,851 Economic Development - - - - - - 1,563,211 1,563,211 Notes Receivable 1,275,601 - - - - - - 1,275,601 Property Held for Resale 86,800 - - - - - - 86,800 Public Safety Employee Benefits - - 2,762,916 - - - - 2,762,916 Other Restricted 161,013 49,156 262,064 472,233 Total Restricted 11941,822 5,155,358 2,762,916 26,752,495 15,097,510 8,608,613 5,656,664 65,975,378 Committed to: Emergency Fund 4,961,882 4,961,882 Total Committed 4,961,882 4,961,882 Assigned to: Library Programs 898,683 - - - - - - 898,683 Senior Center Programs 2,876 - - - - - - 2,876 Replacement and Acquisition Resents 413,371 - - - - - - 413,371 Other Assigned 123,065 123,065 Total Assigned 11437,995 1,437,995 Unassigned: 28,516,324 (37,619) 28,478,705 Total Fund Balances $ 37,651,416 $ 5,236,428 $ 2,847,078 $ 26,752,495 $ 15,097,510 $ 8,608,613 $ 5,619,045 $101,812,585 77 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 11. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks of loss. During the year ended June 30, 2018 the City purchased property, liability, and workers' compensation insurance under the program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $500,000 self-insured retention on workers' compensation losses. The liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. Settled claims have not exceeded this commercial coverage in any of the past thirty fiscal years. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current -year claims and to establish a reserve for catastrophic losses. The Fund's accrued liabilities balance includes a claims liability at June 30, 2018 based on the requirements of GASB Statement No. 10, as amended, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Loss Reserve Fund's claims liability amount for property, liability, and workers' compensation for the years ended June 30, 2018 and 2017 are as follows: Also, the City is partially self-insured, through stop -loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop -loss coverage for claims in excess of $125,000 per employee with an aggregate stop -loss of $9,980,032. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund's claims liability amount for health care coverage for the years ended June 30, 2018 and 2017 are as follows: 2016-2017 2017-2018 Beginning -of - Fiscal -Year Liability Current -Year Claims and Changes in Estimates $ 350,000 $ 7,356,000 385,000 7,893,000 78 Claim Payments $ 7,321,000 7,868,000 Balance at Fiscal Year -End 385,000 410,000 Current -Year Beginning -of- Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liability Estimates Payments Year -End 2016 —2017 $ 2,489,000 $ 706,000 $ 906,000 $ 2,289,000 2017 —2018 2,289,000 1,309,000 1,425,000 2,173,000 Also, the City is partially self-insured, through stop -loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop -loss coverage for claims in excess of $125,000 per employee with an aggregate stop -loss of $9,980,032. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund's claims liability amount for health care coverage for the years ended June 30, 2018 and 2017 are as follows: 2016-2017 2017-2018 Beginning -of - Fiscal -Year Liability Current -Year Claims and Changes in Estimates $ 350,000 $ 7,356,000 385,000 7,893,000 78 Claim Payments $ 7,321,000 7,868,000 Balance at Fiscal Year -End 385,000 410,000 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 12. Commitments and Contingencies Contractual Commitments The total outstanding contractual commitments as of June 30, 2018 are as follows: Fund Proje ct Bridge, street and traffic Paving and Bridge Construction, control construction Engineering Design and Consulting Other construction Public Works & Culture and Recreation Construction Parking Parking Facility Restoration Repair Wastewater Sewer Construction & Riverfront Crossings Park Water Water Construction & Water Plant Computer System Sanitation Landfill Cell Reconstruction & Road Improvements Airport Viewing Area Remodel & North T -Hangar Restroom Stormwater Stormwater System Improvements & Storm Sewer Replacements Developer Commitments Amount $ 10,616,901 8,310,930 274,726 949,396 612,033 1,041,174 29,198 4,681 $ 21,839,039 In order to encourage development within designated TIF districts, the City Council has approved developer grants to 7 different projects. The grants are to be paid only after certain conditions have been met by each project developer, and are to be paid over many years in the form of a rebate of a predetermined percentage of future property taxes generated by the property. Currently, it is estimated that outstanding commitments totaling $28,331,453 exist, of which $499,747 is expected to be paid in the next fiscal year. These items are expensed in the period in which they are paid. There were no payments made in the current fiscal year. No liability is recognized due to the fact that the agreements are conditional and the payments are to be funded by future property taxes receivable on the project. 79 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 13. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City's experience that such actions are settled for amounts substantially less than claimed amounts. The City's management estimates that the potential claims against the City, not covered by various insurance policies, would not materially affect the financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. 14. Accounting Change/Restatement Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (OPEB), was implemented during fiscal year 2018. The revised requirements establish new financial reporting requirements for state and local governments which provide their employees with OPEB benefits, including additional note disclosure and required supplementary information. In addition, GASB Statement No. 75 requires a state or local government employer to use the entry age normal actuarial cost method, and requires deferred outflows of resources and deferred inflows of resources which arise from other types of events related to OPEB to be recognized. During the transition year, as permitted, beginning balances for deferred outflows of resources and deferred inflows of resources are not reported. Beginning net position for governmental and business type activities was restated to retroactively report the change in valuation of the beginning total OPEB liability, as follows: Governmental Internal Service Total Governmental Activities Net position June 30, Net OPEB obligation 2017, as previously measured under Total OPEB liability Net position July 1, reported previous standards at June 30, 2017 2017, as restated 223,433 $ 3,563 24,158 62 $ 247,591 $ 3,625 $ (4,386) (237) $ (4,623) 222,610 23,983 $ 246,593 Parking $ 22,065 $ 162 $ (180) $ 22,047 Transit 19,696 337 (561) 19,472 Wastewater Treatment 137,880 187 (247) 137,820 Water 70,494 201 (324) 70371 Sanitation 31,550 259 (371) 31,438 Stormwater 50,545 1 (9) 50,537 Housing Authority 8,376 75 (86) 8,365 Airport 27,714 (3) (9) 27,702 Internal Service 15,494 - - 15,494 Total Business Type Activities $ 383,814 $ 1,219 $ (1,787) $ 383,246 80 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 15. Tax Abatements Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. City Tax Abatements The City provides tax abatements for urban renewal and economic development projects with tax increment financing as provided for in Chapters 15A and 403 of the Code of Iowa. For these types of projects, the City enters into agreements with developers which require the City, after developers meet the terms of the agreements, to rebate a portion of the property tax paid by the developers, to pay the developers an economic development grant or to pay the developers a predetermined dollar amount. No other commitments were made by the City as part of these agreements. For the year ended June 30, 2018, $139,648 of property tax was diverted from the City under the urban renewal and economic development projects. Tax Abatements of Other Entities Property tax revenues of the City were not reduced by any amount for the year ended June 30, 2018 under agreements entered into by any entities. 16. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued six statements not yet implemented by the City. The statements, which might impact the City's financial statements, are as follows: Statement No. 83, Certain Asset Retirement Obligations, will be effective for fiscal year ending June 30, 2019. The objective of this Statement is to address legally enforceable liabilities associated with tangible capital assets. Statement No. 84, Fiduciary Activities, will be effective for fiscal year ending June 30, 2020. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. Statement No. 87, Leases, will be effective for fiscal year ending June 30, 2021. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, will be effective for fiscal year ending June 30, 2019. The objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. 81 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2018 Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, will be effective for fiscal year ending June 30, 2020. The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period. Statement No. 90, Majority Equity Interests — an amendment of GASB Statements No. 14 and No. 61 will be effective for fiscal year ending June 30, 2020. The objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The City's management has not yet determined the effect these statements will have on the City's financial statements. 82 83 CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET AND ACTUAL - ALL GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS BUDGETARY BASIS REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2018 (dollar amounts expressed in thousands) Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Public safety Property taxes $ 56,524 $ $ 56,524 Delinquent property taxes 1 293 1 Tax increment financing taxes 2,459 13,969 2,459 Other city taxes 2,767 General government 2,767 Special assessments - 13,470 - Licenses and permits 2,734 9 2,743 Intergovernmental 15,981 16,905 32,886 Charges for services 5,465 40,898 46,363 Use of money and property 1,887 2,377 4,264 Miscellaneous 3,952 570 4,522 Total revenues 91,770 60,759 152,529 Expenditures/Expenses: Public safety 23,915 23,915 Public works 8,801 8,801 Health and social services 293 293 Culture and recreation 13,969 13,969 Community and economic development 7,436 7,436 General government 8,525 8,525 Debt service 13,470 13,470 Capital outlay 33,751 - 33,751 Business -type - 76,609 76,609 Total expenditures/expenses 110,160 76,609 186,769 Excess (deficiency) of revenues over (under) expenditures/expenses (18,390) (15,850) (34,240) Other financing sources and uses, net 13,774 2,512 16,286 Net change in fund balances (4,616) (13,338) (17,954) Balances, beginning of year 101,081 110,292 211,373 Balances, end of year $ 96,465 $ 96,954 $ 193,419 See Note to Required Supplementary Information. 84 Budgeted Amounts Final to Actual Variance - Positive Original Final (Negative) $ 56,458 $ 56,458 $ 66 9,703 10,134 1 2,334 2,455 4 2,720 2,778 (11) 1 1 (1) 1,867 1,867 876 29,463 35,413 (2,527) 46,032 46,457 (94) 2,331 2,340 1,924 3,808 4,837 (315) 145,014 152,606 (77) 24,426 24,605 690 9,703 10,134 1,333 300 300 7 14,280 14,427 458 8,835 10,781 3,345 9,544 9,772 1,247 14,256 13,564 94 32,530 77,563 43,812 59,456 86,499 9,890 173,330 247,645 60,876 (28,316) (95,039) 60,799 17,478 18,698 (2,412) (10,838) (76,341) $ 58,387 133,730 211,373 $ 122,892 $ 135,032 85 CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2018 (dollar amounts expressed in thousands) Governmental Fund Types Accrual Modified Accrual Budget Basis Adjustments Basis Revenues $ 91,770 $ (4,537) $ 87,233 Expenditures 110,160 (3,759) 106,401 Net (18,390) (778) (19,168) Other financing sources and uses, net 13,774 823 14,597 Beginning Fund Balances 101,081 5,300 106,381 Ending Fund Balances $ 96,465 $ 5,345 $ 101,810 Enterprise Fund Types Accrual Accrual Budget Basis Adjustments Basis Revenues $ 60,759 $ 1,817 $ 62,576 Expenditures 76,609 (18,763) 57,846 Net (15,850) 20,580 4,730 Other financing sources and uses, net 2,512 (1,609) 903 Beginning Fund Balances 110,292 257,460 367,752 Ending Fund Balances $ 96,954 $ 276,431 $ 373,385 See Note to Required Supplementary Information. 86 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2018 In accordance with the Code of Iowa, the City Council annually adopts a budget following required public notice and hearing which includes all funds, except internal service funds and agency funds. The budget basis of accounting is a modified accrual basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon nine major classes of expenditures known as functions, not by fund or fund type. These nine functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital outlay and business -type. The legal level control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted revenues by $7,592,000 and expenditures by $74,315,000. The budget amendments were primarily due to changes in the breadth and timing of capital improvement projects, which the City budgets in full during the initial year of the projects and amends future year budgets for carryover. 87 88 City of Iowa City, Iowa Required Supplementary Information -Schedule of the City's Proportionate Share of the Net Pension Liability Municipal Fire and Police Retirement System of Iowa For the Last Four Years* (amounts expressed in thousands) * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. 89 2018 2017 2016 2015 City's proportion of the net pension liability 3.648635% 3.697128% 3.704972% 3.778137% City's proportionate share of the net pension liability $ 21,398 $ 23,117 $ 17,406 $ 13,696 City's covered payroll 10,347 10,019 9,716 9,648 City's proportionate share of the net pension liability as a percentage of its covered payroll 206.80% 230.73% 179.15% 141.96% Plan fiduciary net position as a percentage of the total pension liability 80.60% 78.20% 83.04% 86.27% * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. 89 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Municipal Fire and Police Retirement System of Iowa For the Last Ten Years (amounts expressed in thousands) 90 2018 2017 2016 2015 Statutorily required contributions $ 2,679 $ 2,682 $ 2,782 $ 2,955 Contributions in relation to the statutorily required contribution (2,679) (2,682) (2,782) (2,955) Contribution deficiency (excess) $ - $ - $ - $ - City's covered payroll $ 10,334 $ 10,347 $ 10,019 $ 9,716 Contfibutions as a percentage of covered payroll 25.92% 25.92% 27.77% 30.41% 90 2014 2013 2012 2011 2010 2009 $ 2,906 $ 2,383 $ 2,277 $ 1,654 $ 1,336 $ 1,425 (2,906) (2,383) (2,277) (1,654) (1,336) (1,425) $ 9,648 $ 9,122 $ 9,197 $ 8,310 $ 7,860 $ 7,601 30.12% 26.12% 24.76% 19.90% 17.00% 18.75% 91 City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Municipal Fire and Police Retirement System of Iowa Year ended June 30, 2018 Changes of benefit terms: There were no significant changes of benefit terms. Changes of assumptions: The 2017 valuation added five years projection of future mortality improvement with Scale BB. The 2016 valuation changed postretirement mortality rates to the RP -2000 Blue Collar Combined Healthy Mortality Table with males set -back two years, females set -forward one year and disabled individuals set -forward one year (male only rates), with no projection of future mortality improvement. The 2015 valuation phased in the 1994 Group Annuity Mortality Table for postretirement mortality. This resulted in weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group Annuity Morality Table. The 2015 valuation phased in the 1994 Group Annuity Mortality Table for postretirement mortality. This resulted in weighting of 2/12 of the 1971 Group Annuity Mortality Table and 10/12 of the 1994 Group Annuity Morality Table. 92 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability Iowa Public Employees' Retirement System For the Last Four Years* (amounts expressed in thousands) * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. 93 2018 2017 2016 2015 City's proportion of the net pension liability 0.3968158% 0.3962696% 0.4159256% 0.4378904% City's proportionate share of the net pension liability $ 26,433 $ 24,938 $ 20,549 $ 17,366 City's covered payroll 29,619 28,448 28,495 28,654 City's proportionate share of the net pension liability as a percentage of its covered payroll 89.24% 87.66% 72.11% 60.61% Plan fiduciary net position as a percentage of the total pension liability 82.21% 81.82% 85.19% 87.61% * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. 93 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Iowa Public Employees' Retirement System For the Last Ten Years (amounts expressed in thousands) 94 2018 2017 2016 2015 Statutorily required contributions $ 2,696 $ 2,645 $ 2,540 $ 2,545 Contributions in relation to the statutorily required contribution (2,696) (2,645) (2,540) (2,545) Contribution deficiency (excess) $ - $ - $ - $ - City's covered payroll $ 30,190 $ 29,619 $ 28,448 $ 28,495 Contributions as a percentage of covered payroll 8.93% 8.93% 8.93% 8.93% 94 2014 2013 2012 2011 2010 2009 $ 2,559 $ 2,442 $ 2,327 $ 1,877 $ 1,780 $ 1,659 (2,559) (2,442) (2,327) (1,877) (1,780) (1,659) $ 28,654 $ 28,170 $ 28,833 $ 27,013 $ 26,764 $ 26,133 8.93% 8.67% 8.07% 6.95% 6.65% 6.35% 95 City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Iowa Public Employees' Retirement System Year ended June 30, 2018 Changes of benefit terms: Legislation passed in 2010 modified benefit terms for current Regular members. The definition of final average salary changed from the highest three to the highest five years of covered wages. The vesting requirement changed from four years of service to seven years. The early retirement reduction increased from 3% per year measured from the member's first unreduced retirement age to a 6% reduction for each year of retirement before age 65. Changes of assumptions: The 2017 valuation implemented the following refinements as a result of an experience study dated March 24, 2017: • Decreased the inflation assumption from 3.00% to 2.60%. • Decreased the assumed rate of interest on member accounts from 3.75% to 3.5% per year. • Decreased the discount rate from 7.50% to 7.00%. • Decreased the wage growth assumption from 4.00% to 3.25%. • Decreased the payroll growth assumption from 4.00% to 3.25%. The 2014 valuation implemented the following refinements as a result of a quadrennial experience study: • Decreased the inflation assumption from 3.25 percent to 3.00 percent • Decreased the assumed rate of interest on member accounts from 4.00 percent to 3.75 percent per year. • Adjusted male mortality rates for retirees in the Regular membership group. • Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate closed 20 year period. The 2010 valuation implemented the following refinements as a result of a quadrennial experience study: • Adjusted retiree mortality assumptions. • Modified retirement rates to reflect fewer retirements. • Lowered disability rates at most ages. 96 • Lowered employment termination rates • Generally increased the probability of terminating members receiving a deferred retirement benefit. • Modified salary increase assumptions based on various service duration. 97 City of Iowa City, Iowa Required Supplementary Information - Schedule of Changes in the City's Total OPEB Liability, Related Ratios and Notes For the Current Year (amounts expressed in thousands) 2018 Service Cost $ 502 Interest 245 Difference between expected and actual experience (377) Changes in assumptions 982 Benefit payments (174) Net change in total OPEB liability 1,178 Total OPEB liability beginning of year, as restated 6,412 Total OPEB liability end of year $ 7,590 City's covered -employee payroll $ 40,524 Total OPEB liability as a percentage of covered -employee payroll 18.73% Note: GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. Changes of benefit terms: There were no significant changes of benefit terms. Chances of assumptions: Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period. Year ended June 30, 2018 3.87% Year ended June 30, 2017 3.58% The payroll growth rate, turnover rate and retirement rate assumptions were updated for IPERS employees based on the Iowa Public Employees' Retirement System July 1, 2017 Acturial Valuation Report. The same rates for MFPRSI employees were updated based on the Municipal Fire and Police Retirement System of Iowa July 1, 2017 Actuarial Valuation Report. The mortaility table has been updated from SOA RPH-2015 Total Dataset Mortality Table fully generational using Scale MP -2015 to SOA RPH-2017 Total Dataset Mortality Table fully generational using Scale MP -2017. 98 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds account for revenues derived from specific sources that are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Economic Development Fund — accounts for revenue and expenditures of economic development activities. Community Development Block Grant Fund — accounts for revenue from the U.S. Department of Housing and Urban Development's Community Development Block Grant programs. Metropolitan Planning Organization of Johnson County Fund — accounts for the financial activities of the metropolitan/rural cooperative planning organization. 99 100 CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2018 (amounts expressed in thousands) Special Revenue Metropolitan Community Planning Development Organization Economic Block of Johnson Development Grant County Total Assets Equity in pooled cash and investments $ 1,845 $ 181 $ 234 $ 2,260 Receivables: Property tax 371 - - 371 Interest 5 - 1 6 Notes - 3,666 - 3,666 Due from other governments - 56 52 108 Total assets $ 2,221 $ 3,903 $ 287 $ 6,411 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 334 $ 36 $ 12 $ 382 Accrued liabilities - 10 13 23 Total liabilities 334 46 25 405 Deferred inflows of resources: Unavailable revenues: Succeeding year property taxes 362 - - 362 Grants - 26 26 Total deferred inflows of resources 362 26 - 388 Fund balances: Restricted 1,563 3,831 262 5,656 Unassigned (38) - - (38) Total fund balances 1,525 3,831 262 5,618 Total liabilities, deferred inflows of resources and fund balances $ 2,221 $ 3,903 $ 287 $ 6,411 100 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended June 30, 2018 (amounts expressed in thousands) 101 Special Revenue Metropolitan Community Planning Development Organization Economic Block of Johnson Development Grant County Total Revenues Property taxes $ 2,782 $ - $ - $ 2,782 Intergovernmental 31 1,038 311 1,380 Use of money and property 15 34 3 52 Miscellaneous - 42 6 48 Total revenues 2,828 1,114 320 4,262 Expenditures Current: Community and economic development 747 1,107 591 2,445 Excess (deficiency) of revenues over (under) expenditures 2,081 7 (271) 1,817 Other Financing Sources (Uses) Transfers in 60 - 276 336 Transfers out (1,098) (31) - (1,129) Total other financing sources and (uses) (1,038) (31) 276 (793) Net change in fund balances 1,043 (24) 5 1,024 Fund Balances, Beginning 482 3,855 257 4,594 Fund Balances, Ending $ 1,525 $ 3,831 $ 262 $ 5,618 101 102 INTERNAL SERVICE FUNDS Internal Service Funds account for goods and services provided by one department to other City departments on a cost -reimbursement basis. The funds in this category are: Equipment Maintenance Fund — accounts for the provision of maintenance for City vehicles and equipment and vehicle rental to other City departments from a central vehicle pool. Central Services Fund — accounts for the support services of photocopying, mail, overnight shipping, and two-way radios provided to other City departments. Loss Reserve Fund — accounts for the property, liability, Workers' Compensation and health insurance premiums and claims activity for City departments, including the self-insured retention portion. Information Technology Fund — accounts for the accumulation and allocation of costs associated with telecommunications and data processing, including the operation and replacement of equipment. 103 CITY OF IOWA CITY COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2018 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets Equity in pooled cash and investments $ 13,700 $ 729 $ 15,147 $ 2,916 $ 32,492 Receivables: Accounts and unbilled usage - - 95 - 95 Interest 112 4 109 17 242 Due from other governments 51 - - - 51 Inventories 521 - - - 521 Total current assets 14,384 733 15,351 2,933 33,401 Noncurrent assets: Capital assets: Land 45 - - - 45 Buildings 1,298 - 189 1,487 Improvements other than buildings 50 - - 50 Machinery and equipment 19,941 133 19 1,655 21,748 Infrastructure - - - 2,101 2,101 Accumulated depreciation (12,191) (73) (19) (1,278) (13,561) Construction in progress 83 - - 253 336 Total noncurrent assets 9,226 60 - 2,920 12,206 Total assets 23,610 793 15,351 5,853 45,607 Deferred Outflows of Resources Pension related deferred outflows 185 6 38 186 415 OPEB related deferred outflows 17 1 1 13 32 Total deferred outflows of resources 202 7 39 199 447 Liabilities Current liabilities: Accounts payable 223 6 215 97 541 Accrued liabilities 36 1 2,589 36 2,662 Employee vested benefits 43 2 2 17 64 Total current liabilities 302 9 2,806 150 3,267 Noncurrent liabilities: Employee vested benefits 33 1 2 14 50 Net pension liability 643 21 134 620 1,418 Other post employment benefits liability 146 11 11 113 281 Total noncurrent liabilities 822 33 147 747 1,749 Total liabilities 1,124 42 2,953 897 5,016 Deferred Inflows of Resources Pension related deferred inflows 34 1 7 33 75 OPEB related deferred inflows 7 1 1 5 14 41 2 8 38 89 Net Position Net investment in capital assets 9,226 60 - 2,920 12,206 Unrestricted 13,421 696 12,429 2,197 28,743 Total net position $ 22,647 $ 756 $ 12,429 $ 5,117 $ 40,949 104 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For the Year Ended June 30, 2018 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services $ 6,495 $ 219 $ 10,313 $ 2,257 $ 19,284 Total operating revenues 6,495 219 10,313 2,257 19,284 Operating Expenses: Personal services 1,054 39 222 1,002 2,317 Commodities 1,707 3 58 490 2,258 Services and charges 559 116 9,805 352 10,832 3,320 158 10,085 1,844 15,407 Depreciation 1,619 21 - 244 1,884 Total operating expenses 4,939 179 10,085 2,088 17,291 Operating income (loss) 1,556 40 228 169 1,993 Nonoperating Revenues: Gain on disposal of capital assets 232 - - (262) (30) Interest income 179 10 204 37 430 Total nonoperating revenues 411 10 204 (225) 400 Income (loss) before transfers 1,967 50 432 (56) 2,393 Transfers in 706 - - 496 1,202 Transfers out (1,430) (504) - (189) (2,123) Change in net position 1,243 (454) 432 251 1,472 Net Position, Beginning, as restated 21,404 1,210 11,997 4,866 39,477 Net Position, Ending $ 22,647 $ 756 $ 12,429 $ 5,117 $ 40,949 105 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2018 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities 14 305 265 1,075 13,209 Receipts from customers and users $ 6,511 $ 219 $ 10,375 $ 2,257 $ 19,362 Payments to suppliers (2,220) (121) (9,906) (831) (13,078) Payments to employees (1,008) (35) (296) (1,061) (2,400) Net cash flows from operating activities 3,283 63 173 365 3,884 Cash Flows From Noncapital Financing Activities Transfers to other funds Net cash flows from noncapital financing activities Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment Proceeds from sale ofproperty Net cash flows used for capital and related financing activities Cash Flows From Investing Activities Interest on investments Net increase in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Due from other governments Inventories Prepaid item Accounts payable Accrued liabilities Employee vested benefits Net pension liability Deferred outflows of resources Deferred inflows of resources Other post employment benefits liability Total adjustments Net cash flows from operating activities Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others Contributions of capital assets to government and others (1,430) (23) (1,453) (1,430) (23) (1,453) (1,708) (34) (128) (1,870) 237 - - 237 (1,471) (34) (128) (1,633) 109 8 132 28 277 491 14 305 265 1,075 13,209 715 14,842 2,651 31,417 (55) - (55) $ 13,700 $ 729 $ 15,147 S 2,916 $ 32,492 $ 1,556 $ 40 $ 228 S 169 $ 1,993 1,619 21 244 1,884 - 62 62 16 - 16 (55) - (55) - - - 12 12 101 (2) (43) (1) 55 5 - (92) 3 (84) 8 1 1 (9) 1 43 1 16 (39) 21 (35) (1) (1) (29) (66) 3 1 (3) 1 22 2 2 18 44 1,727 23 (55) 196 1,891 $ 3,283 $ 63 $ 173 $ 365 $ 3,884 $ 706 $ - $ - $ 496 $ 1,202 $ - $ 481 $ - $ 189 $ 670 106 AGENCY FUND The Agency Fund accounts for assets held by the City in a trustee or custodial capacity for other entities, such as individuals, private organizations, or other governmental units. The fund in this category is: Project Green Fund — accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. 107 CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended June 30, 2018 (amounts expressed in thousands) Balance Balance July 1, 2017 Increases Decreases June 30, 2018 Project Green Assets Equity in pooled cash and investments Interest receivable Total assets Liabilities Accounts payable Due to agency Total liabilities $ 163 $ 72 $ 85 $ 150 1 1 1 1 $ 164 $ 73 $ 86 $ 151 $ 4 $ 12 $ 4 $ 12 160 61 82 139 $ 164 $ 73 $ 86 $ 151 108 Statistical Section Tabs Statistical Section This part of the City of Iowa City's comprehensive annual financial report represents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 111 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity 116 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 126 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 136 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 138 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. 109 110 Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business -type activities Net investment in capital assets Restricted Unrestricted Total business -type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position CITY OF IOWA CITY, IOWA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) 2009 2010 2011 2012 2013' 2014 2015 2016' 2017 2018 $ 100,741 $ 111,703 $ 123,935 $ 135,998 $ 133,989 $ 138,482 $ 153,729 $ 163,362 $ 183,651 $ 157,106 26,586 25,588 31,179 35,021 22,867 39,958 36,447 42,154 47,676 41,490 17,938 32.478 36,862 38,906 50,744 39,758 15.520 18,402 16,264 63,617 -7-14-5-16- -7-16-9-76-9 S 191.976 $ 209,925 ::2:0::7::6::0:0::: -T-21-8-19-8 7-0-79-6 -7-11-3-91-8 S 247,591 S 262213 $ 162,211 $ 172,601 $ 186,177 $ 195,073 $ 253,617 $ 264,727 $ 279,272 $ 279,679 $ 285,912 $ 294,109 19,159 17,588 20,658 20,176 19,033 19,438 22,389 22,269 21,238 22,219 63,842 65,725 61,032 58,850 74,370 71,542 57,367 69,472 76,664 73,126 -7-1-47-11-1 _7_15571_4 -7-1-6-7-86-7 -7-1-7-4-09-9 -7-3-4-7-01-0 _7377 -7-3-5-9-02-8 -7-3-7-1-41-0 -T-3-8-3-81-4 S 389.454 $ 262,952 $ 284,304 $ 310,112 $ 331,071 $ 387,606 $ 403,209 $ 433,001 $ 443,041 $ 469,563 $ 451,215 45,025 43,176 51,837 55,197 41,900 59,396 58,836 64,423 68,914 63,709 82,500 98,203 97,894 97,756 125,114 111,300 72,887 87,874 92,928 136,743 -T-3-9-0-47-7 -T-42-5-68-3 5 459.843 -T-4-8-4-01-4 -T-5-5-4-62-0 $ 573905 _7776-4-7-2-4 S 595338 -7-63-1-40- S 651,667 ' The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterprise Fund effective the fiscal year ending June 30, 2013. 2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015. H 112 CITY OF IOWA CITY, IOWA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) 2009 2010 2011 2012 2013' 2014 2015 2016' 2017 2018 Expenses Governmental activities: Public safety $ 20,730 $ 19,955 $ 18,867 $ 21,186 $ 20,989 $ 22,721 $ 21,193 $ 22,029 $ 24,002 $ 25,191 Public works 15,177 16,806 19,145 17,556 10,240 8,258 11,037 10,839 12,032 12,813 Culture and recreation 9,574 12,238 10,811 13,107 14,481 16,586 14,049 14,422 15,525 16,363 Community and economic development 8,726 16,913 16,501 16,305 10,596 10,059 7,093 6,786 8,253 12,019 Gmeral government 7,600 7,549 7,356 7,591 7,513 7,687 7,752 6,240 6,124 6,858 Debt service 3,264 2,970 2,841 2,400 2,237 1,797 1,517 1,287 1,481 1,414 Total governmental activities expenses 65,071 76,431 75,521 78,145 66,056 67,108 62,641 61,603 67,417 74,658 Business -type activities Wastewater 11,925 11,274 10,971 11,069 10,464 21,139 12,131 11,866 11,233 11,392 Water 9,185 8,309 8,523 8,781 9,074 8,723 8,403 8,149 8,921 9,472 Sanitation 7,296 7,705 7,461 8,315 7,279 8,402 8,114 8,735 9,123 9,408 Housing authority 7,238 7,838 7,448 7,911 7,658 7,703 7,873 8,378 8,798 9,535 Parking 4,489 4,536 4,135 4,167 4,579 4,093 4,678 4,460 4,620 5,590 Airport 693 724 1,049 1,127 1,086 1,209 1,612 1,597 1,402 1,680 Storurwater 11223 1,187 1,418 1,304 1,318 1,314 2,091 1,989 2,432 1,844 Cable television 633 645 638 689 692 781 704 - - - Transit 6,998 7,795 7,379 7,486 7,263 8,071 Total business -type activities expenses 42,682 42,218 41,643 43,363 49,148 61,159 52,985 52,660 53,792 56,992 Total primary government expenses _L_107 753 _L_1 18 649 $ 117.164 _L_111 108 _L_1 15 204 _L_128 _L_l _L_1 14 263 $ 121,209 $ 131,650 Program Revenues Governmental activities Cbarges for services Public safety $ 2,968 $ 2,980 $ 3,279 $ 3,401 $ 4,098 $ 3,626 $ 3,926 $ 4,813 $ 5286 $ 4,438 Public works 1,392 1,0611,117 1,112 52 61 388 628 724 62 Culture and recreation 715 773 872 825 775 808 801 823 842 836 Community and economic development45 50 1,044 36 441 General govemmmt 1,626 2,574 2,931 2,817 2,763 3,030 2,975 1,252 1,524 1,520 Operating grants and contributions 8,185 15,554 13,517 8,682 4,731 3,231 8,701 9,941 10,828 10,245 Capital grants and contributions 3,773 8,291 6,048 6,078 6,876 5,580 11,556 3,999 9,952 1,459 Total goverummod activities program revenues 18,659 31,233 27,764 22,915 19,295 16,381 28,397 22,500 29,192 19,001 Business -type activities Cbarges for services: Wastewater 12,557 12,637 12,836 12,670 12,832 12,559 12,189 12,266 12,277 12,626 Water 8,107 7,957 8,054 8,419 8,583 8,443 8,527 9,134 9,275 9,473 Sanitation 8,286 8,096 8,259 8,115 8,181 8,467 9,015 9,215 9,927 10,014 Housing authority 181 180 208 207 205 213 237 300 321 323 Parking 5,438 5,377 5,234 4,743 5,043 5,294 5,502 5,438 5,453 5,648 Airport 248 289 293 306 314 328 349 333 345 348 Stormwater 622 617 641 811 974 1,093 1,147 1,168 1,544 1,560 Cable Television 788 790 809 824 816 773 750 - - - Transit' - - - - 2,117 2,185 2,289 2,099 2,089 2,216 (continued) 112 CITY OF IOWA CITY, IOWA CHANGES IN NET POSITION (-.ti. -d) Last Ten Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) 2009 2010 2011 2012 2013r 2014 2015 2 2017 2018 Capital grants and contributions: Wastewater 266 2,115 2,394 3,223 30,181 7,105 1,370 3,415 2,226 1,913 Capital grants and contributions: Water 132 572 973 977 494 539 581 254 869 483 Capital grants and contributions: Sanitation - 6 - 2 - - - - - 22 Capital grants and contributions: Airport 3,239 3,311 358 1,576 2,452 5,214 137 260 58 49 Capital grants and contributions: Stmmwaka 68 541 140 436 226 711 792 370 1,251 892 Capital grants and contributions: Housing authority - 25 11- - - - - - - Capital grants and contributions: Parking - - 269 4 - - - - - - Capital grants and contributions: Transit - - - - 898 243 - 308 395 3,827 Operating grants and contributions: Housing authority 6,668 7,765 7,438 6,782 6,968 6,721 7,628 8,318 8,532 9,065 Operating grants and contributions: Water 15 6 - - 442 6 2 - - - Operating grants and contributions: Airport 2 - - - 11 56 232 128 69 72 Operating grants and contributions: Sanitation 607 6 10 - 23 27 25 3 - 3 Operating grants and contributions: Wastewater l - - - - 62 21 - - - Operating grants and contributions: Stmmwater - - - - 13 13 279 95 - 2 Operating grants and contributions: Transit - - - - 1.767 2,118 2,082 2,095 2,235 2,088 Total business -type activities program revenues 47,225 50,290 47,927 49.095 82.540 62,170 53,154 55,199 56,866 60,624 Total primary government revenues $ 65,884 $ 81.523 $ 75.691 $ 72,010 -L-101 8 35 -L--8551 $ 81,551 $ 77,699 $ 86,058 S 79.625 Net (Expense) / Revenues Governmental activities $ (46,412) $ (45,198) $ (47,757) $ (55.230) $ (46,761) $ (50,727) $ (34,244) $ (39,103) $ (38,225) $ (55,657) Business -type activities 169 2539 3074 3 632 Total primary government net expense -T _ General Revenues and Otber Cbanges m Net Position Governmental activities: General revenues: Propertytaxes $ 47,085 $ 49,467 $ 48,011 $ 50,516 $ 51,017 $ 50,551 $ 52,205 $ 53,114 $ 57,649 $ 59,046 Road use tax' 5,254 5,525 6,068 6,394 6,589 6,745 - - - - Local Sales Option tax - 8,141 8,911 8,644 8,858 466 - - - - other taxes 1,489 1,535 2,464 2,491 2,609 2,778 2,810 2,717 2,802 2,706 Grants and contributions not restricted to specific purposes - - - - - - 1,048 2,080 1,583 1,547 Earnings on investments 3,057 1,766 1,539 1,823 841 973 1,188 1,045 1,397 2,368 Miscellaneous 4,894 3,893 6,230 4,228 4,390 4,353 5,518 4,464 3,369 3,656 Gain on sale of assets - - 761 2,950 1,312 1,651 135 218 2,151 140 Transfers 205 (625) (4,020) (3,867) (10,485) (6,192) (10,057) (6,395) (7,053) 1,814 Reassignments 82 Total governmental activities 61,984 69,702 69,964 73,179 65,131 61,325 52,847 57,325 61,898 71,277 Business -type activities: General revenues: Earnings on investments 2,577 1,311 954 813 671 494 707 715 938 1,496 Gain on sale of assets 360 230 314 336 293 725 856 2,463 69 2,438 Miscellaneous 317 464 381 484 918 265 374 362 1,260 456 Transfers (205) 625 4,020 3,867 10,485 6,192 10,057 6,395 7,053 (1,814) Reassignments - - - - - - - (82) - - Special items - - - - - - (574) - - - Extraordinary items (5,000) Total business -type activities 3,049 2,630 5,669 500 12367 7,676 11,420 9,853 9,320 2,576 Total primary government $ 65,033 $ 72,332 $ 75,633 $ 73.679 S 77.398 $ 69.001 $ 64,267 $ 67178 $ 71,218 $ 73.853 Cbange in Net Position Governmental activities $ 15,572 $ 24,504 $ 22,207 $ 17,949 $ 18,370 $ 10,598 $ 18,603 $ 18,222 $ 23,673 $ 15,620 Business -type activities 7.592 10.702 11953 6232 45759 8.687 11.589 12.392 12.394 6.208 Total prunary government -$�''i'b -$-3d',TG� �1$i -r-= -$ �GZ1T -$--= -7--T.ff_T� h The City of Iowa City reclassified the Mass Transportation Fwd firm the General Fund to an Enterprise Fund effective the fiscal year coding June 30, 2013. ' The City of Iowa City reclassified the Cable Fund from an Enterprise Fwd to the General Fund effective July 1, 2015. 3 The City of Iowa City reclassified Road Use Tax firm General Revenues to Operating Grants effective for the fiscal year ending Jane 30, 2015. 113 General Fund Nonspendable Restricted Committed Assigned Reserved Unassigned Unreserved Total general fund All other Governmental Funds Nonspendable Restricted Reserved Designated for long-term debt Unassigned Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds CITY OF IOWA CITY, IOWA FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) 2009 2010 2011' 2012 2013' 2014 2015 2016' 2017 2018 $ - $ - $ 331 $ 314 $ 69 $ 69 $ 69 $ 69 $ 788 $ 793 - - 16,268 23,779 25,689 26,533 25,291 18,975 9,974 1,942 - - - - - - - 4,699 5,199 4,962 - - 3,542 5,191 1,744 3,400 - 1,143 1,342 1,437 555 406 - - - - 4,483 - - - - - 15,931 14,273 17,113 17,907 19,286 23,366 24,793 28,516 15,362 26,101 - - - - - - - - 7-15 9-17 $26507 7-3 6 0-7 2 7-43 5-57 $ 44,615 -T---47-90-9 -T---49-12-9 -T---48-2-52 -T---42-0-96 $ 37,650 $ - $ - $ - $ - $ - $ - $ - $ - $ 344 $ 165 - - 34,889 34,853 28,108 31,285 27,897 38,266 63,941 64,033 5,339 3,903 - - - - - - - - 11,759 13,952 - - - - - - - - - - (1,741) (366) (5,844) (9) - - - (38) (1,852) (1,674) - - - - - - - - 10,960 8,043 - - - - - - - - $ 26,206 $ 24.224 $ 33.148 $ 34,487 $ 22,264 $ 31,276 $ 27.897 $ 38,266 $ 64,285 $ 64,160 'The City of Iowa City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued March 2009, effective the fiscal year ending June 30, 2011. This Statement establishes new standards for fund balance classifications based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. 3 The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterptise Fund effective the fiscal year ending June 30, 2013 ' The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015. 114 Revenues: Property taxes and assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Use of money and property Miscellaneous Total governmental activities revenues Expenditures Current Public safety Public works Culture and recreation Community and economic development General government Debt service Principal Interest Capital prcj ects Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Issuance of long-term debt Issuance of refunding debt Sale of capital assets Insurance Recoveries Premium (discount) on issuance of bonds Payment of refunded bonds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures CITY OF IOWA CITY, IOWA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) 2009 2010 2011 2012 2013' 2014 2015 20162 2017 2018 $ 48,572 $ 59,143 $ 59,387 $ 61,649 $ 62,483 $ 53,797 $ 55,014 $ 55,831 $ 60,452 $ 61,753 1,284 1,211 1,412 1,307 1,784 1,660 1,806 3,056 3,521 2,734 19,521 31,404 29,870 21,952 19,941 17,636 21,086 20,230 24,140 14,944 2,498 2,433 2,515 2,614 1,800 1,819 2,204 3,357 2,355 2,295 - - - - - - - 760 750 695 2,645 1,599 1.479 1,768 782 909 1,080 946 1,235 1,937 5,302 4,784 71749 5,750 6,325 6,040 7,045 2,913 2,101 2,875 $ 79,822 $ 100,574 $ 102,412 $ 95,040 $ 93,115 $ 81,861 $ 88,235 $ 87,093 $ 94,554 $ 87,233 $ 18,752 $ 19,108 $ 18,717 $ 20,091 $ 20,648 $ 21,370 $ 21,996 $ 21,701 $ 22,513 $ 23,360 12,405 13,311 14,766 15,462 8,503 8,432 12,071 9,466 9,186 10,052 10,849 11,266 12,498 13,075 13,000 13,087 11,821 12,257 13,341 14,208 8,037 10,520 8,878 8,037 8,219 8,196 5,711 5,346 7,695 11,074 7,300 7,191 7,695 7,553 7,286 7,184 7,608 6,007 5,882 6,017 8,418 9,354 10,386 13,294 16,465 13,560 12,564 13,230 13,305 11,895 3,364 3,064 2,889 2,543 2,339 1,903 1,669 1,475 1,597 1,570 17,096 17,690 21,873 16,006 17,861 14,528 14,762 14,848 18,405 28,225 $ 86,221 $ 91,504 $ 97,702 $ 96,061 $ 94,321 $ 88,260 $ 88,202 $ 84,330 $ 91,924 $ 106,401 $ (6399) $ 9,070 $ 4,710 $ (1021) $ (1206) $ (6399) $ 33 $ 2,763 $ 2,630 $ (19168) $ 30,035 $ - $ 16,165 $ 9,690 $ 2,655 $ 19,730 $ 7,785 $ 9,405 $ 22,570 $ 11.995 - - $ 10,930 - - - - - - - 554 222 845 3,619 1,369 1,684 165 252 2,292 140 - 20 594 53 - - - - - - 552 - 394 165 (42) 385 199 441 120 236 (23,140) - (11,085) - - - - - - - 16,486 16,742 18,658 19,499 25,198 13,040 13,089 25,133 34,675 34,666 (16,386) (17,446) (22,722) (23,181) (35,493) (16,134) (23,430) (28,502) (47,033) (32,440) $ 8,101 $ (462) $ 13,779 $ 9,845 $ (6,313) $ 18,705 $ (2,192) $ 6,729 $ 12,624 $ 14,597 $ 1,702 $ 8,608 $ 18,489 $ 8,824 $(7.519) $ 12,306 $ (2,159) $ 9,492 $ 15,254 $ (4,571) 17.0% 15.3% 16.2% 18.6% 24.0% 20.7% 19.8% 21.2% 19.9% 17.1% r The City of Iowa City reclassified the Mass Transportation Fund from the General fund to anEnterprise Fund effective the fiscal year ending June 30, 2013. I The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015. 115 CITY OF IOWA CITY, IOWA GENERAL GOVERNMENT TAX REVENUES BY SOURCE Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Property Tax Road Use Tax Hotel/Motel Tax 2009 47,861 5,254 713 2010 50,256 5,525 699 2011 48,831 6,068 776 2012 51,374 6,394 811 2013 51,836 6,589 872 2014 51,331 6,745 967 2015 53,056 7,231 1,057 2016 53,878 8,320 1,079 2017 58,375 8,672 1,137 2018 59,730 8,427 1,046 ' 1% Local Option Sales Tax went into effect 7/1/09 and was effective through 6/30/13 ' 1% Utility Franchise Fee went into effect 4/1/10. 116 Local Option Utility Sales Tax' Franchise Fee' 8,141 8,912 8,644 8,858 466 47 868 822 918 1,031 902 874 939 976 Total 53,828 64,668 65,455 68,045 69,073 60,540 62,246 64,151 69,123 70,179 CITY OF IOWA CITY, IOWA ASSESSED AND TAXABLE VALUE OF PROPERTY L -t Ten Fiucal Yearn (amounts -p, -ed in thouuandu) Collection Comm -d l,Iud-trial Incremental Valo. Gas& Residential T... W N'.1- Total Yeas Ended Agri-ltnral &Utilitim(-d.ding Military N. (Debt Service Electric Utilities Total Rollback .s a Pere-tage Direct dun.30 Residmtial Cr axed at Ag Rat.) Gas&Electric) Esemationa Valuation Lew Onlv) (excise tax) Valae Percent of Assessed Value Rate 2009 Assessed 2,991,702 1,565 1,108,123 3,396 $ 4,097,994 111,540 54,081 $ 4,263,615 Taxable 1,307,511 1,410 1,105,109 3,396 $ 2,410,634 111,540 44,597 $ 2,566,771 44.080 60.202 17.717 2010 Assessed 3,065,279 1,499 1,133,818 3,324 $ 4,197,272 117,813 61,066 $ 4,376,151 Taxable 1,384,088 1,407 1,133,818 3,324 $ 2,515,989 117,813 45,157 $ 2,678,959 45.589 61.217 17.853 2011 Auneaued 3,122,875 2,315 1,223,304 3,239 $ 4,345,255 25,409 79,196 $ 4,449,860 Taxable 1,464,644 1,534 1,223,304 3,239 $ 2,686,243 25,409 46,333 $ 2,757,985 46909 61.979 17.757 2012 Auneaued 3,182,636 2,264 1,231,756 3,163 $ 4,413,493 25,409 81,240 $ 4,520,142 Taxable 1,544,261 1,562 1,231,756 3,163 $ 2,774,416 25,409 48,338 $ 2,848,163 48.530 63.010 17.842 2013 Assessed 3,284,249 2,516 1,236,609 3,097 $ 4,520,277 11,712 83,538 $ 4,615,527 Taxable 1,666,036 1,448 1,236,609 3,097 $ 2,900,996 11,712 47,404 $ 2,960,112 50.752 64.134 17.269 2014 Assessed 3,367,052 2,656 1,200,457 3,060 $ 4,567,105 14,114 87,100 $ 4,668,319 Taxable 1,776,096 1,592 1,200,457 3,060 $ 2,975,085 14,114 46,813 $ 3,036,012 52.817 65.034 16.805 2015 Auneaued 3,488,113 3,681 1,238,018 2,939 $ 4,726,873 21,132 78,643 $ 4,826,648 Taxable 1,894,080 1,598 1,175,921 2,939 $ 3,068,660 21,132 47,005 $ 3,136,797 54.400 64.989 16.705 2016 Assessed 3,603,744 3,554 1,216,054 2,828 $ 4,820,524 42,307 87,728 $ 4,950,559 Taxable 2,008,493 1,588 1,095,272 2,828 $ 3,102,525 33,331 46,785 $ 3,182,641 55.734 64.289 16.651 2017 Assessed 3,882,757 3,721 1,300,840 2,728 $ 5,184,590 72,651 92,987 $ 5,350,228 Taxable 2,155,033 1,707 1,149,736 2,728 $ 3,303,748 72,651 44,987 $ 3,421,386 55.626 63.948 16.583 2018 Assessed 4,001,761 3,426 1,316,765 2,635 $ 5,319,317 80,560 94,582 $ 5,494,459 Taxable 2,274,452 1,618 1,147,155 2,635 $ 3,420,590 80,560 41,702 $ 3,542,852 56.939 64.480 16.333 S ... - Iowa Deparlm-t ofM-g-t Notm: Property ie r-uueaued in the odd numbered yemu to make adj-n -ts to all property values, according to -trent m mket value. Aa per the Code oflo all real property eubj-t to taxation shall be valued at its acro.) value and, except au otherwise provided, shall be r-uueaued at 100% of its arms) value. 117 CITY OF IOWA CITY, IOWA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (per $1,000 assessed valuation) Source: "Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor. Note: 1Includes Johnson County, City of Iowa City Assessor, and Agricultural Extension levies. Tax rates are per $1,000 of assessed value. 118 Overlapping Rates Total City of Iowa City Iowa City Kirkwood Direct & Collection Operating Debt Service Total City Johnson School Community State of Overlapping Year Millage Millage Millage County' District College Iowa Rates 2009 13.414 4.303 17.717 7.803 14.192 0.852 0.004 40.568 2010 13.634 4.219 17.853 7.708 14.191 0.840 0.003 40.595 2011 13.319 4.438 17.757 7.540 14.690 0.926 0.003 40.916 2012 13.193 4.649 17.842 7.320 14.591 0.999 0.003 40.755 2013 12.826 4.443 17.269 7.075 14.073 1.079 0.003 39.499 2014 12.775 4.030 16.805 7.077 13.688 1.065 0.003 38.638 2015 12.575 4.130 16.705 7.062 13.700 1.058 0.003 38.528 2016 12.822 3.829 16.651 7.228 13.868 1.061 0.003 38.811 2017 13.005 3.578 16.583 7.093 13.989 1.080 0.003 38.748 2018 12.755 3.578 16.333 7.180 13.959 1.132 0.003 38.607 Source: "Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor. Note: 1Includes Johnson County, City of Iowa City Assessor, and Agricultural Extension levies. Tax rates are per $1,000 of assessed value. 118 CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in excess of the Total Tax Levied. ' Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. 119 Percent of Total as Collection Total Tax Current Tax Levy Delinquent Tax Total Tax a Percent of Year Levied Collections Collected Collections' Collections Lev 2009 43,168 43,118 99.9 18 43,136 99.9 2010 45,393 45,318 99.8 17 45,335 99.9 2011 47,789 47,826 100.1 8 47,834 100.1 2012 49,595 49,543 99.9 1 49,544 99.9 2013 50,407 50,139 99.5 3 50,142 99.5 2014 50,307 49,835 99.1 1 49,836 99.1 2015 51,609 51,292 99.4 3 51,295 99.4 2016 52,034 52,074 100.1 0 52,074 100.1 2017 55,330 55,331 100.0 0 55,331 100.0 2018 56,458 56,434 100.0 0 56,434 100.0 Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in excess of the Total Tax Levied. ' Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. 119 CITY OF IOWA CITY, IOWA PRINCIPAL TAXPAYERS Current Year and Nine Years Ago (amounts expressed in thousands) 2009 2018 % of Total % of Total Taxable Taxable Taxable Taxable Ten largest taxpayers' Tvpe of Business Valuation Rank Valuation Valuation Rank Valuation ACT Inc (Am College Testing Prgrm) Educational Testing Service $ 44,435 2 1.03 % $ 56,145 1 1.64 % BBCS Hawkeye Housing LLC Real Estate Mangment - - N/A 45,357 2 1.33 Mid -American Energy Company Public Gas and Electric Utility 45,048 1 1.02 29,806 3 0.87 Vesper Iowa City LLC Real Estate Developer - - N/A 27,191 4 0.79 Midwestone Bank Finanacial - - N/A 26,245 5 0.77 Ann Gerdin Trust (formerly Russell Gerdin) Warehousing 16,939 4 0.39 25,448 6 0.74 Dealer Properties IC LLC (Billion Auto) Car Dealerships - - N/A 21,465 7 0.63 Michael T McLaughlin Property Management - - N/A 18,740 8 0.55 Proctor & Gamble LLC Manufacturing Company 12,688 9 0.29 18,673 9 0.55 Christian Retirement Services (Oaknoll) Retirement Community - - N/A 18,335 10 0.54 SouthGate Development CO RealEstate Developer 20,265 3 0.46 - - N/A National Computer Systems (Pearson) Information Services 16,430 5 0.38 - - N/A MEHSM LC (Sycamore Mall) Shopping Mall 14,954 6 0.34 - - N/A Plaza Towers LLC Condo/Hotel/Commercial space 14,168 7 0.32 - - N/A United Natural Foods Wholesale Distribution Company 13,095 8 0.30 - - N/A Alpha Inc. Industrial 11,715 10 0.27 - - N/A Total $ 209,737 4.80 % $ 287,405 8.41 % Sources: 'City of Iowa City Assessor's Office 120 121 CITY OF IOWA CITY, IOWA PRINCIPAL WATER SYSTEM CUSTOMERS Current Year and Nine Years Ago Sources: City of Iowa City Revenue Division 122 2009 2018 Customer Name Charges Rank Percentage Charges Rank Percentage Proctor & Gamble $ 624,483 1 8.33 % $ 787,275 1 7.91 Veterans Administration Medical Center 91,529 2 1.22 120,538 2 1.21 Mercy Hospital 71,622 4 0.96 67,081 3 0.67 Campus Apartments 66,600 5 0.89 66,835 4 0.67 Tailwind Iowa City LLC formerly Dolphin Lake 37,843 9 0.50 55,022 5 0.55 Dominium JIT Sry formerly Mark IV Apts 53,273 7 0.71 55,000 6 0.55 Iowa City School District - - N/A 47,194 7 0.47 Seville Apts 31,885 10 0.43 38,527 8 0.39 Oaknoll - - N/A 37,130 9 0.37 U of I Mayflower 90,330 3 1.20 34,763 10 0.35 Roberts Dairy 63,517 6 0.85 - - N/A Lear Corp - - N/A - - N/A Sheraton Inn/Holiday Inn 35,806 8 0.48 - - N/A $ 1.166,888 15.57 % $ 1,309,365 13.14 Total Water System Charges $ 7,497,903 $ 9,953,510 Sources: City of Iowa City Revenue Division 122 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years Fiscal Water Sales Water System Year Cubic Feet Sold Charles 2009 234,804,167 7,497,903 2010 234,342,825 7,568,378 2011 236,838,370 7,661,898 2012 246,618,257 7,953,738 2013 254,616,773 8,194,467 2014 239,790,719 7,778,364 20151 240,423,612 8,161,522 2016 255,524,943 8,758,683 2017 267,511,531 9,156,005 2018 293,046,636 9,953,510 Sources: City of Iowa City Revenue Department Notes: 1Beginning in March 2015, Water Sales by Cubic Feet Sold also includes unbilled usage. 123 CITY OF IOWA CITY, IOWA PRINCIPAL SEWER SYSTEM CUSTOMERS Current Year and Nine Years Ago Total Sewer System Charges Sources: City of Iowa City Revenue Department $ 12,499,949 124 $ 12,524,540 2009 2018 Customer Name Charges Rank Percentage Charges Rank Percentage University of Iowa $ 1,953,325 1 15.63 % $ 1,938,618 1 15.48 % Proctor & Gamble 1,443,652 2 11.55 1,355,077 2 10.82 Veterans Administration Medical Center 88,204 8 0.71 162,111 3 1.29 Mercy Hospital 122,737 5 0.98 106,938 4 0.85 Campus Apartments 91,889 7 0.74 78,918 5 0.63 Dominium JIT Sry formerly Mark IV Apts 73,987 9 0.59 68,736 6 0.55 University of Iowa Mayflower 163,776 3 1.31 54,414 7 0.43 Seville Apts - - N/A 52,407 8 0.42 Oaknoll Retirement Residence N/A 52,205 9 0.42 Tailwind Iowa City LLC formerly Dolphin Lake N/A 52,142 10 0.42 Robert's Dairy 155,192 4 1.24 - - N/A Iowa City Landfill 92,318 6 0.74 N/A Sheraton Iowa City Hotel 62,698 10 0.50 N/A $ 4,247,778 33.99 % $ 3,921,566 31.31 % Total Sewer System Charges Sources: City of Iowa City Revenue Department $ 12,499,949 124 $ 12,524,540 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charles 2009 276,455,246 12,499,949 2010 265,375,857 12,541,905 2011 280,303,237 12,748,695 2012 282,134, 840 12,784, 321 2013 285,472,392 12,883,641 2014 269,494,125 12,382,031 20151 266,830,947 12,278,153 2016 270,547,701 12,022,203 2017 277,712,785 12,404,360 2018 283,246,320 12,524,540 Sources: City of Iowa City Revenue Department Notes: 1Beginning in March 2015, Sewer Sales by Cubic Feet Sold also includes unbilled usage. 125 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Governmental Activities General Obligation Bonds' 81,222,533 71,791,737 77,743,957 74,225,654 57,688,803 64,132,510 59,421,203 55,998,392 52,571,254 52,883,524 Revenue Bonds' 2,614,644 2,616,768 2,618,892 2,491,016 15,168,140 15,035,264 CITY OF IOWA CITY, IOWA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Business -Type Activities Capital General Loan Obligation Revenue Note Bonds' Bonds' 211,000 4,317,787 87,875,855 211,000 3,731,167 79,281,888 211,000 3,130,849 75,857,306 211,000 1,483,473 69,059,307 211,000 1,182,315 62,764,738 211,000 886,157 57,568,517 211,000 590,000 45,566,903 211,000 295,000 39,951,661 211,000 - 34,420,914 211,000 - 29,095,062 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. ' Bonds reported net of related premiums and discounts. z Population and personal income information can be found on page 136. 126 Total Primary Government 173,627,175 155,015,792 156,943,112 144,979,434 124,461,500 125,414,952 108,407,998 98,947,069 102,371,308 97,224,850 Percentage of Personal Income 2.92 2.57 2.38 2.08 1.72 1.65 1.43 1.26 1.25 1.16 Per Canitaz 2,513 2,284 2,276 2,103 1,775 1,752 1,477 1,333 1,351 1,256 CITY OF IOWA CITY, IOWA RATIOS OF GENERAL OBLIGATION BONDED DEBTI TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years (amounts expressed in thousands, except per capita) Property Debt Debt Net General Ratio of Net Net Bonded Fiscal Assessed Payable from Payable from Gross Debt Service Obligation Bonded Debt to Debt Year Value' Governmental Proprietary Bonded Debt Fund Balance Bonded Debt Assessed Value Per Capita' 2009 4,263,615 81,222 4,318 85,540 11,759 73,781 17.30:1000 1,068 2010 4,376,151 71,792 3,731 75,523 13,952 61,571 14.07:1000 907 2011 4,449,860 77,744 3,131 80,875 13,151 67,724 15.22:1000 982 2012 4,520,142 74,226 1,483 75,709 11,009 64,700 14.31:1000 938 2013 4,615,527 57,689 1,182 58,871 6,527 52,344 11.34:1000 746 2014 4,668,319 64,133 886 65,019 6,872 58,147 12.46:1000 812 2015 4,826,648 59,421 590 60,011 7,052 52,959 10.97:1000 721 2016 4,950,559 55,998 295 56,293 6,573 49,720 10.04:1000 670 2017 5,350,228 52,571 - 52,571 7,756 44,815 8.38:1000 591 2018 5,494,459 52,884 52,884 8,609 44,275 8.06:1000 572 Notes: 1 General Obligation bonds, net of related premiums and discounts. 'City of Iowa City Budget Book. 'Population data can be found on page 136. 127 CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES' Fiscal Year Ended June 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Notes: Principal2 8,418 9,354 10,386 13,294 16,465 13,560 12,564 13,230 13,305 11,895 Last Ten Fiscal Years (amounts expressed in thousands) Interest 3,364 3,064 2,889 2,543 2,339 1,903 1,669 1,475 1,597 1,570 Total Debt Service 11,782 12,418 13,275 15,837 18,804 15,463 14,233 14,705 14,902 13,465 Total General Governmental Expenditures and Transfers 102,607 108,950 120,424 119,242 129,814 104,394 111,632 112,832 138,957 138,841 1 General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds. 2 Beginning in FYI 3, Taxable Urban Renewal Revenue Bonds are also included. 128 Ratio of Debt Service to General Expenditures .11 : 1.00 .11 : 1.00 .11 : 1.00 .13 : 1.00 .14 : 1.00 .15 : 1.00 .13 : 1.00 .13 : 1.00 .11 : 1.00 .10 : 1.00 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2018 (amounts expressed in thousands, except per capita) 'Long term debt outstanding includes only GO debt. 2City Property Assessed Value of 5,494,459 came from the Iowa Department of Management 3 Population for FYI of 77,437 came from the US Census Bureau Source: Johnson County Auditor's Office. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Iowa City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 129 Total General Percent Amount Long -Term Applicable Applicable Name of Direct Debt to the City of to the City of Debt/Actual Governmental Unit Outstanding Iowa City Iowa City Market Value 2 Per Cap ita3 City of Iowa City $ 68,130 100.00% $ 68,130 1.24% $ 879.8145 Iowa City Community School District' 58,955 56.87 33,528 0.63 442.3336 Johnson County' 10,640 42.09 4,478 0.08 59.0781 Clear Creek- Amana Community School District' 76,045 0.04 30 0.00 0.3958 Kirkwood Comm. College' 90,422 14.11 12,759 0.24 168.3290 Total Overlapping Debt 236,062 50,795 670.1365 Total Direct & Overlapping Debt $ 304,192 $ 118,925 1,549.9510 Per capita assessed value $ 70,954 'Long term debt outstanding includes only GO debt. 2City Property Assessed Value of 5,494,459 came from the Iowa Department of Management 3 Population for FYI of 77,437 came from the US Census Bureau Source: Johnson County Auditor's Office. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Iowa City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 129 CITY OF IOWA CITY, IOWA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Assessed Valuation $ 4,263,615 $ 4,376,151 $ 4,449,860 $ 4,520,142 $ 4,615,527 $ 4,668,319 $ 4,826,648 $ 4,950,559 $ 5,350,228 $ 5,494,459 Debt Limit 213,181 218,808 222,493 226,007 230,776 233,416 241,332 247,528 267,511 274,723 G.O. Bonds 84,995 75,050 80,575 75,320 58,550 64,420 59,340 55,350 51,645 51,880 TIF Rev. Bonds - - - - 2,655 2,655 2,655 2,525 15,200 15,065 Letters of credit - 498 1,616 805 538 1,943 2,005 582 663 475 TIF rebates 2,180 1,223 867 574 307 170 18,206 13,506 17,356 25,012 Total net debt applicable to limit 87,175 76.771 83,058 76,699 62,050 69,188 82,206 71,963 84,864 92,432 Legal debt margin $ 126.006 $ 142.037 7-7139 4-35 $149308 77-7168 7-26 $ 164,228 $ 159.126 77-7175 5-65 $ 182,647 $ 182,291 Total net debt applicable to the limit as a percentage of debt limit 40.89% 35.09% 37.33% 33.94% 26.89% 29.64% 34.06% 29.07°, 31.72% 33.65% Note: Under Iowa code, the city's outstanding general obligation debt should not exceed 5 percent of total assessed property value. 130 CITY OF IOWA CITY, IOWA GENERAL OBLIGATION DEBT ANNUAL MATURITY SCHEDULE Payments Funding Source(s) 131 Principal Outstanding at Fiscal Property Tax Tax Increment Beginning of Fiscal Year Principal Interest Total Revenue Financing Year 2018 11,760,000 1,113,386 12,873,386 12,275,274 598,112 51,645,000 2019 9,335,000 1,257,050 10,592,050 9,833,950 758,100 51,880,000 2020 8,400,000 1,036,338 9,436,338 8,680,208 756,130 42,545,000 2021 7,585,000 819,135 8,404,135 7,647,747 756,388 34,145,000 2022 6,395,000 631,263 7,026,263 6,270,783 755,480 26,560,000 2023 5,520,000 492,013 6,012,013 5,313,697 698,316 20,165,000 2024 4,760,000 358,213 5,118,213 4,573,351 544,862 14,645,000 2025 3,830,000 248,913 4,078,913 3,842,203 236,710 9,885,000 2026 3,030,000 160,600 3,190,600 3,027,816 162,784 6,055,000 2027 2,045,000 85,325 2,130,325 1,967,008 163,317 3,025,000 2028 980,000 29,400 1,009,400 1,009,400 - 980,000 Total $ 63,640,000 $ 6,231,636 $ $ 5,430,199 $ 64,441,437 69,871,636 131 Fiscal Year Ended June 30 CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Revenue Expenses' Net Revenue Available for Debt Service Parking Annual Debt Service Ratio of Principal Interest Total Coverage Revenue 2009 5,630 3,024 2,606 370 584 954 2.73 20106 5,509 3,149 2,360 390 504 894 2.64 2011 5,389 2,920 2,469 420 391 811 3.04 2012 4,945 3,034 1,911 500 339 839 2.28 2013 5,122 3,549 1,573 515 324 839 1.87 2014 5,365 2,969 2,396 530 308 838 2.86 20157 5,620 3,828 1,792 540 254 794 2.26 2016 - - - - - - - 2017 2018 - - - - - Wastewater Treatment Revenue 20096 13,462 5,202 8,260 4,260 2,813 7,073 1.17 20106 13,174 5,050 8,124 4,205 2,307 6,512 1.25 20116 13,281 5,477 7,804 1,840 2,054 3,894 2.00 2012 13,175 5,663 7,512 4,615 1,693 6,308 1.19 2013 13,301 5,340 7,961 4,865 1,547 6,412 1.24 2014 12,835 5,708 7,127 3,250 1,428 4,678 1.52 2015 12,620 6,574 6,046 3,370 1,305 4,675 1.29 2016 12,681 6,513 6,168 3,520 1,175 4,695 1.31 2017 13,383 6,357 7,026 3,625 985 4,610 1.52 2018 13,181 6,622 6,559 3,580 756 4,336 1.51 Water Revenues 20096 8,833 5,726 3,107 995 1,171 2,166 1.43 20106 8,336 5,153 3,183 680 1,055 1,735 1.83 2011 8,354 5,464 2,890 1,110 902 2,012 1.44 20126 8,649 5,653 2,996 1,200 861 2,061 1.45 20136 9,342 6,348 2,994 845 758 1,603 1.87 20146 8,613 5,818 2,795 1,335 650 1,985 1.41 2015 8,715 5,632 3,083 1,380 610 1,990 1.55 2016 9,323 5,387 3,936 1,715 579 2,294 1.72 2017 9,529 6,332 3,197 1,760 524 2,284 1.40 2018 9,838 6,949 2,889 1,455 394 1,849 1.56 Notes: ' Excludes depreciation and interest. 2 Includes principal and interest of revenue bonds only. 3 Parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 5 Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 6 Refunded Revenue Bonds paid are excluded from the principal of Annual Debt Service. 7 Parking Revenue Bonds defeased are excluded from the principal and interest of Annual Debt Service. 132 CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY SCHEDULE 133 Payments Funding Source(s) Principal Outstanding at Fiscal Tax Increment Beginning of Fiscal Year Principal Interest Total Sewer Revenue Water Revenue Financing Year 2018 5,170,000 1,606,970 6,776,970 4,336,332 1,849,143 591,495 48,020,000 2019 5,110,000 1,327,039 6,437,039 4,057,850 1,789,854 589,335 42,850,000 2020 5,525,000 1,137,000 6,662,000 4,267,400 1,802,965 591,635 37,740,000 2021 5,750,000 926,361 6,676,361 4,264,625 1,823,041 588,695 32,215,000 2022 5,460,000 744,165 6,204,165 2,812,500 1,836,190 1,555,475 26,465,000 2023 4,950,000 562,315 5,512,315 2,137,125 1,852,145 1,523,045 21,005,000 2024 2,850,000 436,171 3,286,171 - 1,800,826 1,485,345 16,055,000 2025 2,430,000 373,577 2,803,577 1,351,082 1,452,495 13,205,000 2026 1,665,000 320,589 1,985,589 561,244 1,424,345 10,775,000 2027 990,000 280,725 1,270,725 - 1,270,725 9,110,000 2028 895,000 250,365 1,145,365 1,145,365 8,120,000 2029 915,000 222,495 1,137,495 1,137,495 7,225,000 2030 940,000 193,820 1,133,820 1,133,820 6,310,000 2031 965,000 164,325 1,129,325 1,129,325 5,370,000 2032 995,000 133,950 1,128,950 1,128,950 4,405,000 2033 815,000 102,300 917,300 917,300 3,410,000 2034 840,000 77,850 917,850 917,850 2,595,000 2035 865,000 52,650 917,650 917,650 1,755,000 2036 890,000 26,700 916,700 - - 916,700 890,000 Total $ 48,020,000 $ 8,939,367 $ 56,959,367 $ 21,875,832 $ 14,666,490 $ 20,417,045 133 Fiscal Year 6V1b 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total Fiscal Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Principal 3,580,000 3,465,000 3,820,000 3,980,000 2,660,000 2,085,000 Sewer Interest Total 756,332 592,850 447,400 284,625 152,500 52,125 4,336,332 4,057,850 4,267,400 4,264,625 2,812,500 2,137,125 $ 19,590,000 $ 2,285,832 $ 21,875,832 Principal 1,455,000 1,510,000 1,565,000 1,630,000 1,690,000 1,755,000 1,745,000 1,325,000 555,000 Water Outstanding Interest 394,143 279,854 237,965 193,041 146,190 97,145 55,826 26,082 6,244 Total 1,849,143 1,789,854 1,802,965 1,823,041 1,836,190 1,852,145 1,800,826 1,351,082 561,244 $ 13,230,000 $ 1,436,490 $ 14,666,490 134 CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Taxable Urban Renewal Principal 135,000 135,000 140,000 140,000 1,110,000 1,110,000 1,105,000 1,105,000 1,110,000 990,000 895,000 915,000 940,000 965,000 995,000 815,000 840,000 865,000 890,000 $ 15,200,000 Outstanding Interest 456,495 454,335 451,635 448,695 445,475 413,045 380,345 347,495 314,345 280,725 250,365 222,495 193,820 164,325 133,950 102,300 77,850 52,650 26,700 $ 5,217,045 135 Total 591,495 589,335 591,635 588,695 1,555,475 1,523,045 1,485,345 1,452,495 1,424,345 1,270,725 1,145,365 1,137,495 1,133,820 1,129,325 1,128,950 917,300 917,850 917,650 916,700 $ 20,417,045 136 CITY OF IOWA CITY, IOWA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Calendar Years Per Capita Calendar Personal Personal Average School Unemployment Retail Year Population Income' Income' Increase Enrollment2 Rate' Sales' 2009 69,086 5,943,049 39,214 -2.46 13,049 4.3 905,139,461 2010 67,862 6,039,549 39,477 0.67 13,319 5.0 725,329,723 2011 68,947 6,606,394 42,471 7.58 13,638 4.8 741,407,021 2012 68,947 6,956,611 43,809 3.15 13,862 4.1 767,122,555 2013 70,133 7,217,188 44,608 1.82 14,057 3.8 793,201,342 2014 71,591 7,594,813 46,204 3.58 14,162 3.5 649,794,164 2015 73,415 7,846,426 47,036 1.80 14,495 2.9 838,853,686 2016 74,220 8,031,750 47,574 1.14 15,186 3.2 853,258,347 2017 75,798 8,217,043 48,672 2.31 15,299 3.0 874,928,988 20185 77,437 8,396,022 49,732 2.18 14,285 2.2 854,538,416 Sources and Notes: ' Personal Income and Per Capita Personal Income based on metropolitan Iowa City / Coralville and based on figures from Bureau of Economic Analysis. Personal Income expressed in thousands. 2Iowa City Community School District and local private schools ' Iowa Workforce Development Center ° Iowa Retail Sales & Use Report, Iowa Department of Revenue and Finance. Fiscal year ending June 30. 5 Personal Income and Per Capita Personal Income for 2017 or 2018 are not available. Amounts projected based on average increase over previous 9 years. 6 U Census Bureau Population number is not avaible for 2018. Amounts projected based on an average over previous 9 years 136 Employers University of Iowa Veterans Administration Medical Center Iowa City Community School District Mercy Hospital ACT Inc. (formerly American College Testing Program) Proctor and Gamble Hy Vee City of Iowa City NCS Pearson Johnson County Intemaltiion Automotive Components formerly Lear Corp Systems Unlimited Total Employees Sources: Iowa City Area Development Group Various Employers CITY OF IOWA CITY, IOWA PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2009 2018 Employees Rank Percentage Employees Rank Percentage 28,781 1 30.7 % 29,705 1 28.7 % 1,351 5 1.4 2,150 2 2.1 1,700 2 1.8 1,575 3 1.5 1,305 4 1.4 1,325 4 1.3 1,427 3 1.5 1,187 5 1.1 - - N/A 1,084 6 1.0 1,166 6 1.2 1,012 7 1.0 982 8 1.0 931 8 0.9 1,152 7 1.2 775 9 0.7 - - N/A 609 10 0.6 805 9 0.9 - - N/A 700 10 0.7 - - N/A 39,369 41.8 % 40,353 38.9 % 93,700 103,400 137 138 CITY OF IOWA CITY, IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full -Time Equivalent Employees as of June 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Public Safety Police 103.25 103.25 98 97 103 105 105 105 105 105 Animal Shelter' 6 6 6 6 - - - - - - Fire 57 57 66 65 65 65 64 64 64 64 Inspection Services 15.55 15.55 15.55 15.55 15.55 13.55 13.55 12.85 13.5 13.5 Public Works Public Works Admin 2 2 2 2 2 2 2 2 2 2 Engineerings 11.35 11.35 12.1 12.1 12.1 12.1 12.1 12 16 16 Flood Recovery - - 0.4 0.4 0.4 0.38 - - - - Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 2 2 2 2 Recreation 15.42 15.42 15.42 15.42 15.42 15.42 15.42 14.42 15.42 14.75 Parks 13 13 13 13 13 13 13 13 16 16 Forestry 3 3 3 3 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 3 3 3 3 CBD Maintenance 3 3 3 3 3 3 3 3 - - Library 43.14 43.14 43.14 43.64 43.63 45.13 45.13 44.77 46.17 46.17 Senior Center 6.31 6.31 6.31 6.5 6.5 6.5 6.5 6.5 7 7 Community and Economic Development 9.05 9.05 9.1 9.1 8.4 8.95 8.95 10.8 12.63 13.13 General Government City Council 7 7 7 7 7 7 7 7 7 7 City Clerk 4 4 4 4 4 4 4 4 4 4 City Attorney 6 6 5.6 5.6 5.6 5.6 5.6 5.5 5.5 5.5 City Manager 3 3 3 3 5 6 6 10.5 10.5 9 Personnel 4 4 4 4 4 3 3 3 3 3 Human Rights 2.5 2.5 2.5 2.5 2 2 2 2 2 2 Finance 26.3 26.3 26.24 27.53 23.47 23.97 22.47 23.07 23.13 22.13 Government Buildings 4.96 4.96 4.96 4.83 4.83 4.83 4.83 5.33 4.33 5 Energy Conservation 0.25 0.25 - - - - - - - - Transit' 58.5 58.5 56.25 56.25 - - - - - - Special Revenue Employee Benefits 0.29 0.29 0.26 0.55 0.55 0.55 0.55 0.55 0.55 0.55 CIP / Roads 2 2 - - - - - - - - Flood Mitigation Grants - - 1.6 1.6 - - - - - - Community Development 3.88 3.88 3.83 3.83 3.33 2.98 2.98 2.83 UniverCity Program - - - - 0.2 - - - - - Traffic Engineering 4.15 4.15 4.15 4.15 4.15 4.15 4.15 3.9 4.5 3 Streets 25.5 25.5 25.5 25.5 25.5 25.5 25.5 25.25 25.5 29 MPOJC (formerly JCCOG) 6.6 6.6 6.6 6.6 5.6 5.6 5.6 4.7 4.7 4.7 Other Shared Revenues - - - - 1.6 1.62 - - - - Library Development 1 1 1 1 1 - - - Capital Projects Administrations - - 3 5 6 6 5 4 - - Internal Service Funds Information Technology 12.3 12.3 11.3 11.8 10.86 9.86 9.86 9.86 9.8 10.8 Equipment 11.26 11.26 11.26 11.26 10.75 10.75 10.75 10.75 10.75 10.75 Central Services 0.75 0.75 0.75 0.75 0.76 0.5 0.5 0.5 0.5 0.5 Risk Management 1.93 1.93 2.01 1.8 1.8 1.8 1.8 1.8 1.8 1.8 Business -Type Activities Parking 33.25 33.25 32.75 32.75 29.25 26.25 26.25 23.13 21.63 21.63 Mass Transit' - - - - 51.75 51.25 51.25 51.13 53.63 54.63 Wastewater Treatment 25.6 25.6 25.6 25.4 25.4 24.4 24.65 24.65 25.4 26 Water 32.75 32.75 32.75 32.75 32.75 31.75 32 32 31.75 31.75 Sanitation 34.85 35.85 35.85 37.85 37.85 35.85 35.85 33.35 31.5 31.5 Airport 1.75 1.75 1.75 1.75 1 1 1 1 1 1 Cable Television 6.44 6.44 6.69 6.63 6.63 6.63 5.63 - - - Stormwater 1.9 1.9 1.9 2.1 2.1 2.1 2.6 2.6 2.1 1.5 Housing Authority 13.25 13.25 13.25 13.25 13.18 12.19 10.19 10.19 9.6 9.6 Total 629.03 630.03 633.37 637.74 623.91 615.16 607.66 598.93 599.89 601.89 Source: City's Financial Plan ' Beginning in FY13, Animal Services is reported under Police 2 Beginning in FY13, Communications Division has been moved from Finance to City Manager ' Beginning in FY13, Transit was moved from the General Fund to an Enterprise Fund °Beginning in FY16, Cable was moved from an Enterprise Fund to the General Fund s Beginning in FY17, Capital Project Administration was moved to Engineering 138 Sources: Various city divisions. Notes: ' Numbers are based on a calendar year and 2018 figures are compiled through 10/03/18. 139 CITY OF IOWA CITY, IOWA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years 2010 2013 2014 2015 2018 2009 2011 2012 2016 2017 Public Safety Police' Physical arrests 6,486 5,983 6,590 5,911 4,468 6,192 5,595 5,465 4,482 3,373 Traffic Violations 4,460 4,446 3,403 3,761 2,499 3,718 3,356 2,989 2,246 2,061 Fire' Number of calls answered 4,152 4,472 4,635 5,173 4,713 5,828 6,016 6,974 6,749 5,258 Inspections conducted 1,959 2,145 1,806 1,970 1,431 2,032 1,903 2,459 874 864 Parking Parking Violations 126,050 118,717 109,553 96,117 88,909 60,680 65,196 57,549 62,930 50,346 Wastewater Treatment Daily average treatment in million gallons 12.34 12.86 10.37 8.28 9.84 10.02 9.76 10.48 8.32 7.77 Maximum daily capacity of plant in million gallons 41.0 41.1 41.1 41.1 41.1 41.1 43.3 43.3 43.3 43.3 Number of sewer system customers 23,161 23,344 23,527 23,529 24,059 24,389 24,533 25,085 25,485 26,069 Water Daily average consumption in million gallons 5.51 5.48 5.51 5.49 5.54 5.64 5.33 5.32 5.50 5.84 Maximum daily capacity of plant in million gallons 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 Customers by Classification Residential 23,391 23,657 23,875 24,086 24,442 24,790 23,089 23,638 24,025 24,595 Commercial 1,494 1,481 1,498 1,489 1,491 1,491 1,409 1,415 1,425 1,436 Industrial 15 15 15 15 15 15 14 14 14 15 Other 144 153 156 200 204 202 135 131 134 136 Total Customers 25,044 25,306 25,544 25,790 26,152 26,498 24,647 25,198 25,598 26,182 Sanitation Number of Customers 14,700 14,831 14,926 15,030 15,177 15,331 14,811 15,620 15,917 15,960 Tonnage 8,747 8,869 8,969 8,935 8,956 9,160 9,210 9,476 9,623 9,694 Landfill Tonnage 140,810 150,369 147,265 148,953 111,445 115,624 123,692 126,875 137,025 140,658 Sources: Various city divisions. Notes: ' Numbers are based on a calendar year and 2018 figures are compiled through 10/03/18. 139 140 CITY OF IOWA CITY, IOWA CAPITAL ASSETS BY FUNCTION Last Ten Fiscal Years 2011 2012 2013 2015 2017 2009 2010 2014 2016 2018 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 17 18 18 18 18 20 20 20 24 23 Fire Stations 3 3 3 4 4 4 4 4 4 4 Fire apparatus 9 9 9 11 11 11 11 10 10 10 Public Works Streets Miles 270 272 272 275 276 279 281 283 286 288 Skeet lights 3,408 3,410 3,412 3,412 3,412 3,412 3,412 3,412 3,412 3,307 Culture and Recreation Library 1 1 1 1 1 1 1 1 1 1 Cemetery 1 1 1 1 1 1 1 1 1 1 Acreage 40 40 40 40 40 40 40 40 40 40 Parks 61 40 41 41 42 43 46 46 49 50 Acreage 1,603 1,335 1,354 1,441 1,506 1,897 1,897 1,902 1,932 1,942 Recreation Recreation centers 2 2 2 2 2 2 2 2 2 2 Swimming pools 3 3 3 3 3 3 3 3 3 3 Ball diamonds 30 30 30 30 27 27 27 27 27 27 Tennis courts 12 12 12 12 12 12 12 12 9 9 Soccer fields 20 20 20 20 20 20 20 20 20 20 Pickle Ball Courts - - - - - - - - 8 8 Futscal Courts - - - - - - - - 2 2 Full Basketball Courts - - - - - - - - 3 3 Gaga Pits - - - - - - - - - 2 Parking Facilities 5 5 5 5 5 5 5 5 6 6 Spaces 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,686 3,686 Wastewater Treatment Miles of sanitary sewer 289 291 292 294 295 298 300 301 304 306 Miles of stone sewer 120 122 124 127 128 131 133 136 139 140 Number of treatment plants 2 2 2 2 2 1 1 1 1 1 Number of service connectors 22,875 23,093 23,308 23,529 23,851 24,175 24,533 25,085 25,485 26,069 Water Miles of water mains 263 264 264 266 268 271 273 275 277 279 Number of city owned fire hydrants 2,635 2,662 2,680 2,735 3,330 3,385 3,415 3,447 3,503 3,529 Sanitation Landfills 1 1 1 1 1 1 1 1 1 1 Acreage 395 395 395 411 411 411 418 418 418 418 Sources: Various city divisions. 140 Compliance Section Tab o 1'� iiiws a c ISI iiio niiii , III ISI ISI I�' Certlfled Public Accountants Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards To the Honorable Mayor and Members of City Council City of Iowa City, Iowa Iowa City, Iowa We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 11, 2018. Our report included an emphasis of matter paragraph for the implementation of Governmental Accounting Standards Board Statement No. 75. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City of Iowa City, Iowa's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Iowa City, Iowa's internal control. Accordingly, we do not express an opinion on the effectiveness of City of Iowa City, Iowa's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 141 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Iowa City, Iowa's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Comments involving statutory and other legal matters about the City's operations for the year ended June 30, 2018 are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the City. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretations of those statutes. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Iowa City, Iowa's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Iowa City, Iowa's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. , PO Moline, Illinois December 11, 2018 142 o 1'� iiiws a c ISI iiio niiii , III ISI ISI I�' Certlfled Public Accountants Independent Auditor's Report on Compliance For Each Major Federal Program and On Internal Control Over Compliance Required By the Uniform Guidance To the Honorable Mayor and Members of City Council City of Iowa City, Iowa Iowa City, Iowa Report on Compliance for Each Major Federal Program We have audited City of Iowa City, Iowa's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of City of Iowa City, Iowa's major federal programs for the year ended June 30, 2018. City of Iowa City, Iowa's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of City of Iowa City, Iowa's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Iowa City, Iowa's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of City of Iowa City, Iowa's compliance. 143 Opinion on Each Major Federal Program In our opinion, City of Iowa City, Iowa complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. Report on Internal Control Over Compliance Management of City of Iowa City, Iowa is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City of Iowa City, Iowa's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Iowa City, Iowa's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. &An4aet, r le Moline, Illinois December 11, 2018 144 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2018 Federal Grantor/Pass-Through Grantor/ Program Title or Cluster Title Federal CFDA Number Pass -Through Entity Identifying Number Passed Through to Subrecipients Total Federal Expenditures U.S. Department of Agriculture Indirect: Pass-through Iowa Department of Agriculture Specialty Crop Block Grant Program -Farm Bill 10.170 15SCBGPIA0001 $ 2,553 $ 2,553 U.S. Department of Housing and Urban Development Direct: Community Development Block Grants (CDBG)/ Entitlement Grants Cluster: CDBG/Entitlement Grants 14.218 B -14 -MC -19-0009 971 971 CDBG/Entitlement Grants 14.218 B -15 -MC -19-0009 14,486 35,444 CDBG/Entitlement Grants 14.218 B -16 -MC -19-0009 49,366 245,834 CDBG/Entitlement Grants 14.218 B -17 -MC -19-0009 201,856 310,845 Subtotal CDBG/Entitlement Grants Cluster 266,679 593,094 Home Investment Partnerships Program 14.239 M -14 -MC -190205 180,107 181,202 Home Investment Partnerships Program 14.239 M -15 -MC -190205 67,521 70,134 Home Investment Partnerships Program 14.239 M -16 -MC -190205 206,857 252,396 Home Investment Partnerships Program 14.239 M -17 -MC -190205 49,918 84,380 504,403 588,112 Public and Indian Housing 14.850 IA022-00000116D - 370 Public and Indian Housing 14.850 IA022-00000117D 125,905 Public and Indian Housing 14.850 IA022-00000118D 95,287 221,562 Housing Voucher Program Cluster: Section 8 Housing Choice Vouchers 14.871 IA022VO 8,689,021 Public Housing Capital Fund 14.872 IA05P022501-16 51,790 Public Housing Capital Fund 14.872 IA05P022501-17 102,589 - 154,379 Total U.S. Department of Housing and Urban Development 771,082 10,246,168 U.S. Department of the Interior Direct: Historic Preservation Fund Grants -In -Aid 15.904 P17AP00060 - 8,026 U.S. Department of Justice Direct: Bulletproof Vest Partnership Program 16.607 2016-BUBX16082008 4,279 Edward Byrne Memorial Justice Assistance Grant 16.738 2015 -DJ -BX -0661 1,249 Edward Byrne Memorial Justice Assistance Grant 16.738 2016 -DJ -BX -0589 14,796 (Continued) 145 16,045 (1) City of Iowa City, Iowa Schedule of Expenditures of Federal Awards (Continued) Year Ended June 30, 2018 Pass-through Iowa Department of Transportation Federal Pass -Through Passed Total Federal Grantor/Pass-Through Grantor/ CFDA Entity Identifying Through to Federal Program Title or Cluster Title Number Number Subrecipients Expenditures U.S. Department of Justice (Continued) Highway Planning and Construction Program 20.205 18MPO-MPOJC 157,785 Indirect: Program Cluster Pass-through International Association of 2,006,840 Direct: Chiefs of Police, Inc. Federal Transit Cluster: Crime Victim Assistance -Discretionary Grants 16.582 IACP-2018-7586-04 $ 5,363 $ 54,867 Pass-through Iowa Department of Justice Federal Transit Cluster: Violence Against Women Formula Grants 16.588 VW -18 -04 -CJ - 63,583 Pass-through Iowa Governor's Office of Drug Federal Transit- Capital Investment Grants 20.500 IA -04-0117-371-12 Control Policy Federal Transit- Capital Investment Grants 20.500 IA -34-0002-371-14 206,559 Public Safety Partnership and 20.500 IA -1812-2016-10-371-15 740,064 Community Policing Grants 16.710 16 -CAMP -05 16,038 18,266 Edward Byrne Memorial Justice Assistance Grant 16.738 15 -JAG -197460 56,736 88,868 (1) Total U.S. Department of Justice 78,137 245,908 U.S. Department of Transportation 3,283,858 Direct: Airport Improvement Program 20.106 3-19-0047-024-2017 - 71,837 Indirect: Pass-through Iowa Department of Transportation Highway Planning and Construction Program Cluster: Highway Planning and Construction Program 20.205 HDP -3715(652)--71-52 117,860 Highway Planning and Construction Program 20.205 BROS-3715(663)--8J-52 35,195 Highway Planning and Construction Program 20.205 IA -95-X018-371-14 1,696,000 1,849,055 Pass-through Iowa Department of Transportation and Metropolitan Planning Organization of Johnson County Highway Planning and Construction Program Cluster: Highway Planning and Construction Program 20.205 18MPO-MPOJC 157,785 Subtotal Highway Planning and Construction Program Cluster 2,006,840 Direct: Federal Transit Cluster: Federal Transit -Formula Grants 20.507 IA -2018-008-01-00 1,497,897 Indirect: Federal Transit Cluster: Pass-through Iowa Department of Transportation Federal Transit- Capital Investment Grants 20.500 IA -04-0117-371-12 325,360 Federal Transit- Capital Investment Grants 20.500 IA -34-0002-371-14 206,559 Federal Transit- Capital Investment Grants 20.500 IA -1812-2016-10-371-15 740,064 1,271,983 Bus and Bus Facilities Formula Program 20.526 IA -34-0002-371-14 509,264 Bus and Bus Facilities Formula Program 20.526 IA -2016-019-371-16 4,714 513,978 Subtotal Federal Transit Cluster 3,283,858 (Continued) 146 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards (Continued) Year Ended June 30, 2018 Pass-through Iowa Department of Transportation Formula Grants for Rural Areas Transit Services Program Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities Pass-through Iowa Department of Public Safety/ Governor's Traffice Safety Bureau Highway Safety Cluster: National Priority Safety Programs National Priority Safety Programs Subtotal Highway Safety Cluster Total U.S. Department of Transportation 20.509 IA -2016-027-371-16 20.513 IA -2016-026-01-371-18 20.616 PAP 17-405d-M6OT, Task 24 20.616 PAP 18-405d-M6OT, Task 18 U.S. Department of Homeland Security Indirect: Pass-through Iowa Department of Homeland Security and Emergency Management Division Hazard Mitigation Grant 97.039 DR -4187-0003-01 Total Expenditures of Federal Awards (1) Total CFDA 16.738 $104,913 See Notes to the Schedule of Expenditures of Federal Awards. 147 349,744 108,764 10,582 31,140 41,722 5,904,980 201,484 $ 851,772 $ 16,609,119 Federal Pass -Through Passed Total Federal Grantor/Pass-Through Grantor/ CFDA Entity Identifying Through to Federal Program Title or Cluster Title Number Number Subrecipients Expenditures U.S. Department of Transportation (Continued) Indirect: Pass-through Iowa Department of Transportation and Metrpolitan Planning Organization of Johnson County Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research 20.505 18MPO-MPOJC $ $ 42,215 Pass-through Iowa Department of Transportation Formula Grants for Rural Areas Transit Services Program Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities Pass-through Iowa Department of Public Safety/ Governor's Traffice Safety Bureau Highway Safety Cluster: National Priority Safety Programs National Priority Safety Programs Subtotal Highway Safety Cluster Total U.S. Department of Transportation 20.509 IA -2016-027-371-16 20.513 IA -2016-026-01-371-18 20.616 PAP 17-405d-M6OT, Task 24 20.616 PAP 18-405d-M6OT, Task 18 U.S. Department of Homeland Security Indirect: Pass-through Iowa Department of Homeland Security and Emergency Management Division Hazard Mitigation Grant 97.039 DR -4187-0003-01 Total Expenditures of Federal Awards (1) Total CFDA 16.738 $104,913 See Notes to the Schedule of Expenditures of Federal Awards. 147 349,744 108,764 10,582 31,140 41,722 5,904,980 201,484 $ 851,772 $ 16,609,119 City of Iowa City, Iowa Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2018 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of the City under programs of the federal government for the year ended June 30, 2018. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the entity. Note 2. Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the modified accrual basis of accounting for governmental funds and accrual basis of accounting for proprietary funds. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and has met the eligibility criteria of the federal grant. Revenue from federal awards is recognized when the City has done everything necessary to establish its right to the revenue. In the governmental funds, revenue from federal grants is recognized when the revenue is both measureable and available. In proprietary funds, revenue from federal grants is recognized when it is earned. Pass-through entity identifying numbers are presented where available. Note 3. Indirect Cost Rate The City has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. 148 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2018 I. Summary of the Independent Auditor's Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency identified? • Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: • Material weakness(es) identified? • Significant deficiency identified? Type of auditor's report issued on compliance for major programs • Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of major programs: CFDA Number Name of Federal Program or Cluster 14.871 Housing Choice Voucher Cluster: Section 8 Housing Choice Vouchers Unmodified ❑ Yes 0 No ❑ Yes 0 None Reported ❑ Yes 0 No ❑ Yes 0 No ❑ Yes 0 None Reported Unmodified ❑ Yes 0 No Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? (Continued) 149 0 Yes ❑ No City of Iowa City, Iowa Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2018 Findings Relating to the Basic Financial Statements as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards A. Internal Control No matters reported. B. Instances of Noncompliance No matters reported. III. Findings and Questioned Costs for Federal Awards A. Internal Control for Federal Awards No matters reported. B. Instances of Noncompliance No matters reported. IV. Other Findings Related to Required Statutory Reporting IV -A-18 Certified Budget — Expenditures for the year ended June 30, 2018 did not exceed the amounts budgeted. IV -13-18 Questionable Expenditures — No expenditures were noted that we believe may not meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. IV -C-18 Travel Expenses — No expenditures of City money for travel expenses of spouses of City officials or employees were noted. IV -D-18 Business Transactions — No business transactions between the City and City officials or employees were noted. IV -E-18 Bond Coverage — Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to insure that the coverage is adequate for current operations. IV -F-18 Council Minutes — No transactions requiring Council approval which had not been approved by the Council were noted. IV -G-18 Deposits and Investments — No instances of noncompliance with the deposit and investment provisions of Chapter 12B and Chapter 12C of the Code of Iowa and the City's investment policy were noted. IV -H-18 Revenue Notes — There were no instances of noncompliance with revenue note provisions. IV -1-18 Annual Urban Renewal Report — The annual urban renewal report was properly approved and certified to the Iowa Department of Management on or before December 1. IV -J-18 Payment of General Obligation Bonds — The City appears to be in compliance with Chapter 384.4 of the Code of Iowa. 150 Item Number: 5. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Memorandum from City Clerk: 2019 Listening Post Tentative Schedule ATTACHMENTS: Description Memorandum Irom City Clerk: 2019 Listening Post Tentative Schedule CITY OF IOWA CITY zots,iiitchtti MEMORANDUM Date: December 19, 2018 To: Mayor and City Council Members From: Kellie K. Fruehling, City Clerk Re: 2019 Listening Post Tentative Schedule Tentative quarterly dates for 20)4 Council Listening Posts: • February (week of February 11th) • May(week of May 13th) • August(week of August 12th) • November(week of November 1191) Future listening post suggested sites include: • Farmer's Market (Wednesday or Saturday) • Party in the Park • Pheasant Ridge Neighborhood Center, 2651 Roberts Road • Senior Center Lobby Past sites include: 2017 o Broadway Neighborhood Center-April 2017 (Council Members Taylor and Thomas) o Kiwanis Park - Party in the Park -June 2017 (Council Members Cole and Taylor) o Uptown Bill's - September 2017 (Council Member Mims and Mayor Throgmorton) o Oaknoll Retirement Residence - November 2017 (Mayor Pro tern Botchway and Council Member Taylor) 2018 o Kirkwood Community College— IC Campus— February 2018 (Mayor Pro tern Taylor and Council member Mims) o Washington Street Farmers Market-June 2018 (Mayor Pro tern Taylor and Council member Cole) o Willow Creek Park— Party in the Park -August 2018 (Council member Mims and Council member Thomas) o Weber Elementary - November 2018 (Mayor Throgmorton and Mayor Pro tern Taylor) S:Tentative schedule 2019.doc Item Number: 6. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Email from Gustave Stewart and Austin Wu: Affordable Housing Funds in RFC Area ATTACHMENTS: Description Email from Gustave Stewart and Austin Wu: Affordable Housing Funds in RFC Area Kellie Fruehling From: Stewart, Gustave <gustave-stewart@uiowa.edu> Sent: Monday, December 17, 2018 3:16 PM To: Council Cc: Wu, Austin A Y Subject: Affordable Housing Funds in RFC Area Dear City Council, We are sending this email to express our interests with the affordable housing requirement in the Riverfront Crossings area. The potential development at 12 E. Court Street has the ability to add a large quantity of affordable housing units to the city's housing supply and/or funds to the affordable housing fund. This is good and something that will be beneficial for the city. City Council has broadly taken a stance in favor of the affordable housing fee in lieu option for this development. This could add over nine million dollars to the affordable housing fund in Riverfront Crossings, opening up a wide range of possibilities of what the funds could be used for. While this funding is intended to be used for affordable housing, we have not been able to find a clear articulation of how the city intends for affordable housing to look like in this area. There are many different possibilities on what affordable housing could look like in the area, but it is unknown to us how many of these possibilities could be used by students. It is possible that students do not qualify for housing provided by certain organizations, as they may have to abide by standards set by programs such as LIHTC/Section 42 and/or Section 8. At the same time, it is also important to consider if these future affordable housing units are going to be intended for homeowners or renters. This is important to think about because the rental permit cap that is currently in place for the area reduces the ability for rental affordable housing units built in the neighborhood if they are designed for single family occupancy rather than multi -family. We believe that as there is the real possibility of a substantial amount of funds being added to the affordable housing fund in the RFC area, it is important for City Council to articulate a clear vision on how funds will be used. By doing this, City Council can ensure the future usage of the affordable housing funds will be equitable, sustainable, and allow for a diverse range of individuals to benefit from the fund, including students. Best regards, Gustave Stewart - City Liaison Austin Wu - Deputy City Liaison Item Number: 7. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Email from Johnson County Affordable Housing Coalition: Preparing for 2019 ATTACHMENTS: Description Email from Johnson County Affordable Housing Coalition: Preparing for 2019 Kellie Fruehling From: Johnson County Affordable Housing Coalition <jcaffordablehousing@gmail.com> Sent: Tuesday, December 18, 2018 3:56 PM To: Council Subject: Preparing for 2019 News and Updates from the Johnson County Affordable Is this email not displaying correctly? Housing Coalition! View it in your browser. JOHNSON COUNTY Af%omWe Housing Co kxi Thank you to each of our members and supporters for your commitment to housing for all in Johnson County and beyond. We are making progress, but there is still much work ahead. If you haven't yet submitted your 2018-19 membership, include JCAHC in your year-end giving. Memberships and/or additional donations can be sent via our website, www.ocaffordablehousing.org. We have some exciting news for 2019, including the formation of two new JCAHC working groups: Affordable Rental Advocacy and Affordable Homeownership Advocacy. Look for more on these groups --and how to join --soon. Finally, mark your calendars for our next Community Meeting, scheduled for Friday, January 25, noon -1 pm. Our guests will be Iowa Valley Habitat for Humanity. I As always, we are grateful for your voices and your leadership. Wishing each of you the very best in the new year. Sincerely, Sara Barron Executive Director Copyright © 2018 Johnson County Affordable Housing Coalition, All rights reserved. mailehimp You are receiving this email because you signed up at an event or meeting. Our mailing address is: Johnson County Affordable Housing Coalition 308 E. Burlington St. PMB 121 Iowa City, IA 52240 Add us to your address book unsubscribe from this list I update subscription preferences I view email in browser + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 2018 Building Statistics ATTACHMENTS: Description 2018 Building Statistics Item Number: 8. City of Iowa City 2018 Building Statistics Value/Type of Construction January �.. February March April May June August September '.. October November December TOTAL NON-TAXABL Single Family -$ 1940,000.._1,094,952 5,066,123 2,439,690 1,903,500 2,722,849 ....July _ 1,'114,190 2,547,500 1,799,900'.. 51431,347 4,040,173' 30,100,224 Number of Permits 6 4 20 9 6 10 4 9 5j 20 11 104 Duplex -$ 650,0001 ..- 1 1,219,917 ........ 305,000 2,174,917 Number of Permits _._ _.... 21 2 1 5 Sororities &Fraternities -$ ' Number of Permits j Multiple Units 1,500,000 3,800,0001 7,3450001 1,960,000t 1,139,374 600,00011040,000 27.384,374' $3,000,000 Number of Permits 1 2 1 1(foundahon) I 22(foundatio 1 10 Number of Buildings 1 _ 2 1'.. '' 2 1 7 Number of Dwelling Units 18 30 _ 551 7 53 163 Mix - CommorrJaUResidenfiai 645,000 25,677,956 4,000,000 4,020,830 220,000 ! '1 34,563,786 Number of Permits 1&1(found a ti(foundatio 1 �.._ _1 1(foundabon) _ 6 Number of Buildings 1 1 1 � -- g Numberof Dwelling units 3 130 36 j 15g Motels, Hotels- $ _... 1 Number of Permits _. _ ! '. Churches -$ _ �.-....-... Number of Permits - --- Industrial -$ 450,000 156,500 265,0001 871,500 Number of Permits g Service Stations - $ - Number of Permits Hospitals&Institutions -$ j Number of Permits-- - Offices, Banks, Prof. - $ 24,00024 - - - 1 000 - - Number of Permds 1 j 1 Public Works&Utilities -$ 1 '', - _ 1,188,084 _ 11,000,000 12,188,084 12,188,084 Number of Pannds 1 _-. 1 2 Schools -$ ...._ _ ._ Number of Permits j Stores & Customer Svc. - $ --§-, 915,000 2,600,000 3,482,675 6,997,675, Number of Permits 11 1 1 3 Misc. Structures/Fences -$ 630001 87,7331 - 16,790 8,000'.. 82,000 9,000 266,523 Number of Permits 2 3 3 1 _ - 1 2 12 Remodel, Residential -$ - 590,260... 398993 824,201 970,961 761,082 1535,247 706,159 531,229 283,883 761,216 8,350,575 Number of Permits 17 15 30 27 23 33 ..987,344 36 361 27 20 29 293 Remodel, Commercial -$ 6,721,600 916,600 2,865,083 9,398,786 485,95213,047,842 2,017,202 _ 6.815,6891 15,939,400 600,705%2,8158,552 61,667,411 31296,024 7 12 11 13 9 14 10 1615 8 124 Remodel Public Works-$ 183000 68,140 20,000 460000 256,900 3,159,454 4,147,494 4,147,494 Number of Permits 1 1 1 1 1 1 6 Accessory Structures 35,000 1 45,000 70,000 89,000 15,000 212,800 1 62,449 138,800 668,049 Number of permits 1 2 _ 1 ... 3 1 3 1 2 3 16 Condo Conversion - No Value. _ j TOTAL VALUE 12,064,8602_8156641'..17,493,907 17,008,000 3,716,32420,908,839 11,676,5361 14,629,348 10,296,189 30,013,941 189404,612 50,631,602 TOTAL PERMITS 36 331 72 55 45 64 54. 63 54 5554 j 585 Demolition Residential units lost -- - 21.. 2, g Item Number: 9. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Community Police Review Board: December 11 ATTACHMENTS: Description Community Police Keview Board: December 11 DRAFT COMMUNITY POLICE REVIEW BOARD MINUTES — December 11, 2018 CALL TO ORDER: Chair Don King called the meeting to order at 5:30 P.M. MEMBERS PRESENT: Monique Green, Latisha McDaniel, Orville Townsend MEMBERS ABSENT: David Selmer STAFF PRESENT: Legal Counsel Pat Ford, Staff Chris Olney OTHERS PRESENT: Iowa City Police Chief Matherly, Sgt. Scott Stevens RECOMMENDATIONS TO COUNCIL None. CONSENT CALENDAR Motion by Galpin, seconded by Townsend, to adopt the consent calendar as presented or amended. • Minutes of the meeting on 11/13/18 • ICPD General Orders 99-10 (Domestic Violence) • ICPD General Orders 00-05 (Off -Duty Conduct: Powers of Arrest) • ICPD General Orders 90-03 (Personal Appearance and Uniform Regulations) • ICPD General Orders 13-01 (Chaplain Program) • ICPD General Orders 00-06 (Special Purpose Vehicles) • ICPD General Orders 00-01 (Search and Seizure) • ICPD General Orders 17-01 (Polygraph) Discussion: Members had questions regarding General Orders, which Chief Matherly was able to answer. Motion carried, 4/0, Selmer absent. NEW BUSINESS None. OLD BUSINESS ICPD General Orders 99-01 Domestic Violence — Police Sgt. Scott Stevens gave a summary of what the (ODARA) Ontario Domestic Assault Risk Assessment Form is and how the police department uses it as a reporting tool. Proposed Ordinance Change Memo - Olney stated that the item will be scheduled for the December 181 City Council work session at 5:00 p.m. for further discussion. Comments (either from the Chair or a representative from the Commission) will be welcome at the meeting. King said he is unable to attend and asked for volunteers. Townsend and Galpin volunteered to attend. King suggested that the Board consider removing Item 11 of the proposed ordinance change memo that was submitted to Council as it was already an option to hire an investigator. Ford clarified that the Board currently has the option of hiring an independent investigator when Level of Review is set prior to issuing a public report. The Board discussed the benefits of being able to meet with the Police Chief prior to issuing the public report. Townsend felt the memo should remain as it was written. CPRB December 11, 2018 Page 2 Motion by Townsend, seconded by Galpin, to leave item 11 as it was written in the proposed ordinance change memo submitted to Council. Motion carried, 4/0, Selmer absent. PUBLIC DISCUSSION None. BOARD INFORMATION None. STAFF INFORMATION Olney reminded the Board that the deadline to register for the voluntary Board Commission Training 101 was Thursday, December 13tH TENTATIVE MEETING SCHEDULE and FUTURE AGENDAS (subject to change) • January 8, 2019, 5:30 PM, Helling Conference Rm • February 12. 2019, 5:30 PM, Helling Conference Rm • March 12, 2019, 5:30 PM, Helling Conference Rm • April 9, 2019, 6:00 PM, IC Public Library (Community Forum) ADJOURNMENT Motion for adjournment by Townsend, seconded by Galpin. Motion carried, 4/0, Selmer absent. Meeting adjourned at 6:31 P.M. COMMUNITY POLICE REVIEW BOARD ATTENDANCE RECORD YEAR 2017-2018 (Meeting Date) KEY: X = Present O = Absent O/E = Absent/Excused NM = No meeting --- = Not a Member TERM 12/7 1/9/18 2/13/18 3/19/18 4/17/18 4/23/18 5/8/18 6/12/18 7/23/18 8/21/18 9/11/18 10/9/18 11/13/18 12/11/18 NAME EXP - Donald 7/1/19 X O X X X X X X X X X O X X King Monique 7/1/20 X X X X X X X X X X X X X X Galpin Orville 7/1/20 X X X X X X X X X X X X X X Townsend Latisha 7/1/21 ---- ------ ------ ------ ------ ------ ------ ------ --- -- ------ ------ X O X McDaniel Royceann 7/1/21 - ---- ----- X O X O/E X O/E ----- ----- ----- ----- ___-_ -____-- Porter David 7/1/21 X XX X X X X X X Q X O X O Selmer KEY: X = Present O = Absent O/E = Absent/Excused NM = No meeting --- = Not a Member Item Number: 10. + r ui �1 lat • yyrrmr�� CITY Ok IOWA CITY www.icgov.org December 20, 2018 Parks & Recreation Commission: December 12 ATTACHMENTS: Description Narks & Kecreation Commission: December 12 IOWA CITY PARKS & RECREATION COMMISSION MINUTES PRELIMINARY DECEMBER 12, 2018 RECREATION CENTER — MEETING ROOM B Members Present: Suzanne Bentler, Steve Bird., Wayne Fett, Ben Russell, Angie Smith, Jamie Venzon, Joe Younker Members Absent: Cara Hamann, Lucie Laurian Staff Present: Brad Barker, Zac Hall, Juli Seydell Johnson Others Present: Ellen Sweet CALL TO ORDER Chairman Younker called the meeting to order at 5 p.m. RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): Moved by Fett, seconded by Russel that the Parks and Recreation Commission recommend to Council as follows: 1) the current distribution of various ulanround surfaces is adequate; 2) inclusivity and accessibility issues, however, should be reviewed on a regular basis; and 31 the review should include the consideration of a variety of features to address inchnivity and accessibility issues. The Council should know that the Commission is committed to review issues relating to the inclusivity and accessibility of local narks on at least an annual basis. Passers 6-0 (Hamann & Laurian Absent). OTHER FORMAL ACTION: Moved by Bentler, seconded by Fett to auvrove the November 14.2018 minutes as written. Passed 7-0 (Hamann & Laurian absent). PUBLIC DISCUSSION None PLAYGROUND SURFACES — ZAC HALL In January of 2018 Hall presented to the Commission a report on playground accessibility. The three system -wide priorities outlined in the master plan include: (1) maintain fall -zone surfaces; (2) provide accessible picnic tables; (3) provide parking, truncated curb ramps and paths to park amenities. He also reported at that time that the 2018 park projects would include the addition of accessible pathways to amenities within Pheasant Hill, Highland, and Mercer Parks. At that time, Commission requested a map showing playground locations and the surface type at each one. Hall has been in contact with the Iowa City School District regarding their playground surface testing. Seydell Johnson pointed out that the engineered wood fiber surfacing is ADA compliant. Hall shared a map showing most playgrounds in Iowa City (map attached). He explained that the black dots on the map designate those playgrounds that have a wood fiber surface while the yellow dots are those that have a rubberized surface. The red dots designate the school playgrounds. This map shows approximately 44 playgrounds with 34 of those owned by the City of Iowa City. Hall found a there to be a deficiency of rubberized playground surfaces on the west side of Iowa City, PARKS AND RECREATION COMMISSION December 12, 2018 Page 2 of 5 however, with the Willow Creek upgrades, including ADA accessibility to the playground and the addition of rubberized surfacing, this deficiency will be eliminated. Seydell Johnson asked the Commission for their input on the use of various surfaces of playgrounds in Iowa City of if they would prefer more be replaced with a solid surface. Younker asked if staff has an idea of when parks are scheduled for upgrades. Seydell Johnson stated that one per quadrant per year is the plan. However, she explained, that does not mean that they will be all have a poured playground surface. She noted that the budget is based on the cost for wood fiber surfacing, although some parks are better suited for a poured surface due to their topography. Hall added that rubberized material is ever-changing to meet accessibility requirements. He pointed out that the Ped Mall surface has been replaced three times since its initial installation. He said that the upgrades to Villa and Creekside Parks playgrounds will include paths and ramps to and from the playground and sidewalk. Seydell Johnson had the opportunity today to see the plan for Willow Creek Park. She noted that in one of the concepts there is an area of play -equipment (musical instruments) that will not require a fall -safe surface. Smith noted that the playground at the U of I Hospital is not included in the map and suggested that doing so may impact the overall results of their findings. Younker suggested that this item be placed on the agenda annually. Seydell Johnson mentioned that the Council has requested a recommendation from the Commission on how to proceed. Fett asked if Council had a budget prediction for these projects.Venzon asked if this was something that could be reviewed and discussed as each park comes up for renovation rather than looking at the entire system as a whole. Seydell Johnson said that staff currently looks at each playground site by site to determine what is the best surface solution for the park. Moved by Fett, seconded by Russell. that the Parr and Recreation Commission recommend to Council as follows: 1) the current distribution of various alaymund surfaces is adequate; 2) inclusivity and accessibility issues, however, should be reviewed on a regular basis: and 3) the review should include the consideration of a variety of features to address inclusivity and accessibility issues. The Council should know that the Commission is committed to review issues relating to the inclusivity and accessibility of local parks on at least an annual basis.. Passed 6-0 (Hamann & Laurian Absent). URBAN FOREST MANAGEMENT PLAN — ZAC HALL Hall reported that in 2015 the department began the process of creating a tree inventory of the city trees. In December of 2016, Plan -It Geo was hired to begin the process. That inventory was complete in the Spring of 2018. The next step was to develop a management plan. Plan -It Geo was again hired to assist in the process. Hall provided an overview of the management plan to the Commission (attached). Of note is that the inventory shows there to be 25,451 street trees, 19,563 park trees, and 4,972 planting sites within the city. There are 66 genera and 178 species of trees with the top species, at 8%, being the silver maple. He reported that the ash tree count is 3,515 (2,300 along streets and 1,215 in the parks). He talked about the benefits of city managed trees, reporting that staff and Plan -It -Geo staff reviewed an ordinance to provide urban forest goals, recommendations and strategies. Hall distributed a 46 -page report as well as appendices to Commission of the Urban Forest Management Plan (attached). Commission members were asked to review the report and contact staff with any comments, questions and to be prepared to make an official recommendation at the January meeting. Younker asked what the commission could do to help with the education component of the plan. She noted that the newly formed Tree Committee will likely assist with that. Hall reported that staff is moving forward with notification of neighborhoods regarding EAB efforts. This will include notification of home owners, property owners, as well as tenants. PARKS AND RECREATION COMMISSION December 12, 2018 Page 3 of 5 REPORT ON ITEMS FROM CITY STAFF Parks & Recreation Director — Juli Seydell Johnson: • Project updates: Seydell Johnson reported that some projects are wrapping up for the winter and will begin again in the spring. She also reported that Happy Hollow is nearing completion and that work on a shelter at Riverfront Crossings continues with workers placing a tent over the area allowing them to do so. • Riverfront Crossings Grand Qpeninu Celebration: Staff has begun planning for the grand opening celebration of Riverfront Crossings on July 20, 2018. Commission will be kept apprised as plans progress. • Events: Seydell Johnson noted that the Robert A. Lee Recreation building has been very busy recently with the second of two Holiday Farmers Markets held this past weekend and reported that they were both well attended. Recreation Division Superintendent — Brad Barker: • Winter/Spring Activity Registration: Barker reported that registration for winter/spring activities began today and went smoothly. • Equity Impact Efforts: Barker shared that Recreation staff is working with the College of Public Health and the Healthy LifeStars program. The LifeStar challenge motivates and teaches kids how to live an active and healthy life. The program will bring in 60 elementary age children from Alexander Elementary to participate in 30 minutes of swimming lessons and 30 minutes of healthy living education. Staff is also working on another initiative to get kids outdoors by organizing a three-day camp. Both are free. • Hiring Processes: Barker is working with staff to standardize forms and the process when bringing on new staff, making sure that all supervisors are providing them with the same materials and information. • Donation Requests: Barker is working towards creating a form to track donations requests and what items those include. • Affiliate Agreements: Barker is working to standardize the contracts with affiliate groups. • ActiveNet Agreement Review: Barker explained that ActiveNet is the online registration and reservation program used by the department. Barker is reviewing the contract that was signed in 2012. Staff will be looking at and likely renegotiating this contract. He will keep Commission informed of the details. Parks Division Superintendent — Zac Hall • Fall/Winter Tasks: Hall reported that due to the lack of snow, Parks staff has been able to help with other tasks, both within the Parks Division, and the Streets and Refuse Divisions. Both Parks and Streets staff have been assisting with creek cleanup. • Prairie Burns: Staff continues with the prairie burn process, the most recent burn taking place at Terry Trueblood Recreation Area. The goal is to complete 12 acres of prairie burn each year, However, this year staff has been able to complete 25 acres of burn. • Staff Certifications: Hall reported that staff member Tyler Baird, Horticulturist, recently completed and passed the NRPA Parks and Recreation Professional exam. Another staff member, Steve Erickson, recently went through the commercial track master garden program and is now certified as well. • Other Projects: Parks staff is working to convert two baseball fields into soccer fields at the Kickers complex. Bird mentioned the lack of trash receptacles along paths in the parks. Hall noted that this is intentional as the department is encouraging recycling rather than disposing of items in the parks. Bentler asked if staff PARKS AND RECREATION COMMISSION December 12, 2018 Page 4 of 5 has found there to be more littering in the parks since removing the bins. Hall said staff has not found that to be the case. Hall is working with Jane Wilch, Iowa City Recycling Coordinator, and Lyndsey Kent, Parks & Recreation Event and Communications Supervisor, in developing signage to educate the public of this effort. Younker announced that Commission Members Wayne Fett and Lucie Laurian's terms expire at the end of December. He thanked Fett for his insight and thoughtful discussion. Although Laurian was absent, Younker praised her for her pointed questions and follow-up over the years, further stating that they will both be missed. Two new members, Brianna Wills and Lucas Foelsch, will join the Commission in January. COMMISSION TIMVSUGGESTIONS FOR FUTURE ATENDA ITEMS None ADJOURNMENT: Moved by Bentler, seconded by Smith, to adiourn the meeting at 6:05 p.m. Motion passed 7-0 (Hamann & Laurian absent). PARKS AND RECREATION COMMISSION December 12, 2018 Page 5 of 5 PARKS AND RECREATION COMMISSION ATTENDANCE RECORD KEY: X = Present O = Absent O/E = Absent/Excused NAMEo as a go ° ao ^? o °O TERM e`+t •o-+�'' <� v '�" '~'� .�-c o EXPIRES o Suzanne 12/31/20 X O/E X X O/E NM X X X X X X Benner Steve Bird 12/31/21 * X X O/E X NM X X X X X X Wayne Fett 12/31/18 X X O/E X X NM X O/E X X O/E X Cara 12/31/19 X X X X X NM X X O/E X O/E X Hamann Lucie 12/31/18 X X X O/E X NM X O/E O/E X X X Laurlan Ben Russell 12/31/21 * X O!E X X NM X X X X X X Angie Smith 12/31/21 X X X O/E X NM X X O/E X I X X Jamie 12/31/20 X O/E X OAE X NM X X X X X O/E Venzon Joe Younker 12/31/19 O/E X X X X NM X X X X X X NM = No meeting LQ = No meeting due to lack of quorum * = Not a member now WE CIL r.4". 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